1- The Basics
Limited quantity of resources to meet unlimited demand.
Scarcity
An increase in demand would mean the demand curve shifts...
To the right.
How do you calculate the unemployment rate?
unemployed/ labor force *100
Policy which consists of management of the money supply. Dictated by the Federal Reserve in the United States.
Monetary Policy
A company is able to produce a product at a lower opportunity cost than another company. It has _____________.
Comparative advantage
Something you give up in order to do something else.
Opportunity Cost
As price goes down, quantity supplied...
Also goes down.
The total value of all goods and services produced in a country within a year.
GDP, Gross Domestic Product
During a recession, the fed does what in order to increase the money supply.
Lower interest rates, buy T-bonds
This entity's purpose is to provide financial aid to countries that have serious financial hardships.
International Monetary Fund
The three questions of economics.
What to Produce. How to Produce it. Who consumes it.
An example of a product with inelastic demand.
Something that people will buy even if the price changes.
A healthy unemployment range.
4-6%
A general increase in prices and fall in the purchasing power of money.
Inflation
When one business can produce more of a good than another. This does not account for opportunity cost.
Absolute advantage
An example of Human and Physical capital.
knowledge; machinery
The determinants of demand.
BITER. Buyers, Income, Tastes, Expectations, Related Goods
The best indicator that we have to determine standard of living.
GDP per capita.
The use of government spending and taxing to achieve economic growth, full employment, and stable prices.
Fiscal Policy
Labor being shifted to another country because they're willing to accept lower wages is an example of a challenge of _______________.
Globalization
The four main components of a circular flow model.
Factor market, product market, households, businesses.
The determinants of supply.
NO REST. Number of Sellers, Other goods, Resource Costs, Expectations, Subsidies and Taxes, Technology
When people are seeking work but do not have the necessary skills or education to get the jobs that are available.
Structural Unemployment
If the government decides to raise taxes due to increasing inflation. It is enacting ____________ type of fiscal policy.
Contractionary Fiscal Policy
looking at comparative advantage, when a problem is showing the maximum amount of products that each country can produce it's an __________
Output problem