International Economics
This is the value of one currency expressed in terms of another.
What is an exchange rate?
Who is the Chair of the FED
What is Jerome Powell
This is the study of how people use limited resources to satisfy unlimited wants.
What is economics?
When the price of a good goes up, the quantity demanded usually does this.
What is decrease?
The total value of all goods and services produced within a country in a year.
What is Gross Domestic Product (GDP)?
A tax on imported goods.
What is a tariff?
When the Federal Reserve lowers interest rates, it is using this type of monetary policy to stimulate the economy.
What is expansionary monetary policy?
The branch of economics that focuses on the behavior of individual households and firms.
What is microeconomics?
A representation showing the relationship between price and quantity demanded.
What is a supply/demand curve?
This occurs when the overall price level in an economy rises.
What is inflation?
When a country exports more than it imports.
What is a trade surplus?
The interest rate at which banks lend reserves to each other overnight, targeted by the Fed.
What is the federal funds rate?
This occurs when there are not enough resources to satisfy all wants and needs.
What is scarcity?
quantity supplied equals the quantity demanded.
What is market equilibrium?
A prolonged period of rising unemployment and declining economic output.
What is a recession?
This international organization deals with the rules of trade between nations.
What is the World Trade Organization (WTO)?
This is the portion of depositors’ balances banks must hold in reserve, rather than lend out.
What is the reserve requirement?
The cost of the next best alternative .
What is opportunity cost?
A legal maximum on the price at which a good can be sold.
What is a price ceiling?
A government policy involving changes in tax and spending levels.
What is fiscal policy?
A situation where countries focus on producing goods where they have the lowest opportunity cost.
What is comparative advantage?
This is the tool used by central banks to influence the money supply by buying or selling government securities in the open market.
What is open market operations?
This economic thinker wrote "An Inquiry into the Nature and Causes of the Wealth of Nations", often considered the foundation of classical economics.
What is Who is Adam Smith?
This occurs when a small change in price causes a large change in quantity demanded.
What is elastic demand?
the short-run trade-off between inflation and unemployment, often illustrated by a downward-sloping curve.
What is the Phillips Curve?