Show:
Circular Economy
Business Cycle
Supply and Demand
Government Budget
Core Principles
100
These are the four factors of production?
Land, labor, capital and enterprise
100
The business cycle depicts changes in ________ over ______.
GDP (or aggregate output), time
100
A state of balance such that there is no tendency to change.
Equilibrium
100
The primary source of government revenue.
Taxes
100
The true cost of something is what you give up to get it.
Opportunity Cost
200
These leakages remove funds from the economy
taxes, savings, imports
200
A ______ comes between expansion and contraction.
Peak
200
At market equilibrium, __________ equals __________.
Supply, Demand
200
If government revenue is greater than expenditure, there will be a budget _________.
Surplus
200
__________ means that needs and wants are infinite, while resources are finite.
Scarcity
300
These ________ increase funds in the economy: __________________________.
Injections government spending, investment, exports
300
Over six months of contraction.
Recession
300
A change in prices will move quantity demanded _____________ .
Along the demand curve.
300
Most countries run a budget _________ because their __________ exceeds their _________.
Deficit, expenditures, revenues (or taxes)
300
Groups and people who can be affected differently by a decision or event.
Stakeholders
400
GDP is the _______ of all goods and services produced in a _____ over a certain ________.
Value, country, time period
400
__________ and ________ tend to move in opposite directions.
Unemployment and inflation (or GDP/output)
400
The two main categories of factors shifting aggregate supply are supply shocks and ___________.
Business profitability
400
This is how a government can pay its bills when expenditure exceeds revenue.
Issuing debt (or government bonds)
400
Market forces automatically lead to this.
Equilibrium
500
These four groups add to GDP
consumers, firms, government, foreign buyers
500
[Everybody plays] These are the three main goals of governments relative to the business cycle
Low unemployment, stable and modest inflation, increased potential output (or long-run output)
500
[Everybody plays] List the consumption-related non-price factors that will shift the demand curve.
Consumer confidence interest rates taxes inflation expectations household debt wealth
500
This European country’s constitution requires a balanced budget (i.e., no deficit).
Germany
500
Reducing bank regulation led to the 2009 financial crisis. This is an example of an _______________.
Unintended consequence