Unit 18 Intro &S&D
The point at which supply and demand meet is known as what?
Market Equilibrium
Everyone paying the same rate of tax is known as what?
A flat tax!
Trade without any barriers, tariffs, or sanctions is known as __________.
What is Free Trade!
Inflation is defined by __________.
Prices going up!
When one firm controls an entire industry
Monopoly
The next best alternative is what?
The Opportunity Cost!
When the private costs of my behavior are different from the social costs this is known as a(n) __________.
What is Externality?
The ability to produce goods at a lower opportunity cost is called__________.
Comparative Advantage
High UE and High Inflation is known as ______.
STAGFLATION!
When the government provides money to a firm or industry to help it be more competitive
What is a subsidy?
Economists assume that actions are explained by your attempt to do what?
Maximize your utility!
The delicious smell that enters people’s homes who live across the street from a bakery are experiencing a __________.
Positive Externality!
If a country is better at making something I know that they have a(n) __________.
Absolute Advantage
The Fed can implement _______ policy, to help the economy.
What is monetary?
When few firms control an entire industry
Oligopoly?
Economics assumes that we live in a world of________.
What is scarcity?
Herman Cain’s 999 plan would have likely acted as a __________ tax.
What is Regressive?
NAFTA stands for what?
North
American
Free
Trade
Agreement
What can the Fed do during a period of High Inflation?
They can raise interest rates!!!!
A main tool for measuring inflation based on overall price change in the buyers basket of goods
What is CPI?
The value of the first sip of lemonade on a hot summer day compared to the last sip represents what economic concept?
What is Diminishing Marginal Utility?
What is the guiding force of the market?
The Invisible Hand!
The amount of money a company makes before expenses is known as ________.
Revenue
During periods of recession _____ fiscal policy is reinforced with _______ monetary policy.
Expansionary, Expansionary
The Economic Formula for calculating GDP
What is C + I + G, ( - imports, + Exports)?