ECONOMICS BASICS
This is the economic problem of having unlimited wants but limited resources.
scarcity
This measures the total value of goods and services produced in a country.
GDP (Gross Domestic Product)
Explain
“Set up” (a company)
to establish or start
Correct the mistake:
“Inflation have increased last year.
Inflation has increased…
This country uses the pound sterling.
United Kingdom
When demand increases and supply stays the same, prices usually do this.
increase
A continuous increase in the general price level is called...
inflation
Explain
“Lay off” workers
to dismiss employees temporarily or permanently
Choose the correct form:
“If the government ____ taxes, consumers will spend less.”
raises/ raise/ raised/ had raised
raises
This city is the capital of New Zeland.
Wellington
The cost of the next best alternative you give up is called this.
opportunity cost
When economic activity declines for two consecutive quarters.
a recession
Explain
"“Break even”
to have no profit and no loss
Passive voice:
“The company launched a new product.”
A new product was launched by the company
What is the capital of Jamaica?
Kingston
A market structure with only one seller is called this.
monopoly
This central bank manages monetary policy in the United States.
the Federal Reserve System
Explain
“Scale up”
to expand operations
Complete
I’ll ____________________ his number in the phone book.
look/ look in/ look up/ look over
look up
Named after a street in Lower Manhattan, this is the primary financial district of the United States and a symbol of global capitalism.
Wall Street
When the government sets a maximum price below equilibrium, it creates this.
shortage
An increase in government spending to stimulate the economy is an example of this type of policy.
expansionary fiscal policy
Explain
“Bail out”
to financially rescue
Correct the error:
“Despite of the crisis, the company made profits.”
Despite the crisis…
This economist wrote The Wealth of Nations.
Adam Smith