Micro Pt. 1
The Law of Supply
What is when the price of a good/service increases, the supply of that good/service increases.
The Law of Demand
What is quantity purchased varies inversely with price (i.e. the higher the price, the lower the demand)?
The type of unemployment that results from work only being needed during certain months of the year.
What is seasonal unemployment?
The method of calculating GDP is...
Consumption + Investment + Government Spending + Net Exports (Exports - Imports).
The type of unemployment that results from new workers looking for their first job.
What is Frictional Unemployment?
This exists when the demand for a good/service exceeds the supply of the good/service.
What is a shortage?
The intersecting point between the supply curve and the demand curve for a product is called...
What is the equilibrium?
The Consumer Price Index (CPI) is:
What is the measure that examines the weighted average of prices of a basket of consumer goods and services?
GDP is often used to determine two things:
What is the quality of life in a country and an economy's strength and size.
The type of unemployment that results from the nature of changes in business.
What is Structural Unemployment?
When average incomes increase, purchases of fast food tends to decline. Therefore, fast food is a...
What is inferior good?
Company A sells keychains. They raise their prices by 100%. On a demand curve, this will result in:
What is a movement?
To ensure that goods are not counted twice, GDP is calculated using only these.
What are final goods or final ouput?
The period of growth that follows a trough.
What is an expansion.
When GDP is presented in current dollars (without adjusting for inflation), it is called:
What is nominal GDP?
Company A (which has a loyal consumer base and sells hard-to-find products) raises their prices higher than that of Company B's (which sells a few similar goods to Company A). Most of Company A's consumers will...
What is continue buying from the company/remain loyal?
Company A's manufacturing costs decrease due to the price of natural resources dropping. This will force Company B's (a competitor of Company A) price to...
What is decrease?
Inflation is considered a Macroeconomic topic because it affects...
What is the economy as a whole?
What is the difference between microeconomics and macroeconomics?
Microeconomics studies individuals and business decisions, while macroeconomicsanalyzes the decisions made by countries and governments.
Fiscal policy vs. monetary policy:
There is a scarcity of Honda Civics in Canada. The supply of Toyota Corollas (which are substitutes of Civics) in Canada will... and the demand of Civics in the US market will...
What is decrease and be unaffected.
There is a surplus of Rolex watches. Rolex will try to eliminate this surplus by... This will cause the supply of Breguet watches (a substitution to Rolex watches) to...
What is reducing their prices and increase?
Business investment, the availability of money and credit, and expectations about economic future all influence the...
What is the business cycle?
What is expansion, peak, contraction, and trough?
An individual with a PhD. in Botany works at a local flower shop. He/she miss an example of...
What is under-employment?