Economic Systems
Which type of economic system does things the way they have always been done?
Traditional Economy
This is the desire, willingness, and ability to buy a good or service.
Demand
This policy refers to how a government adjusts its levels of taxing and spending in order to monitor and influence a nation's economy.
Fiscal Policy
When prices go down that is?
Deflation
This means lack of natural resources?
Scarcity
In which type of economic system uses the phrase Laissez-Fare.
Market Economy
This refers to the various quantities of a good or service that producers are willing to sell at all possible market prices.
Supply
This refers to how a central bank (the Fed) influences a nation's money supply.
Monetary Policy
What is the fastest type of inflation?
Hyperinflation
This means the study of decision making in a world where resources are limited.
Economics
Which type of economic system works because the government and the market work together?
Mixed Economy
The state in which market supply and demand balance each other and, as a result, prices become stable.
Equilibrium Price
What is the name of the central bank used by the government to regulate the circulation of money?
Federal Reserve
What is the slowest kind of inflation?
Creeping Inflation
This means (hands-off) economics – little government interference
Laissez-Faire
Which economic system works because the government makes the majority of the decisions?
Command Economy
This says that producers will normally offer more for sale at higher prices and less at lower prices.
Law of Supply
The government selling security bonds is considered tight or easy?
Tight
What measures the rate of prices changes over time?
Price Index
What is the percentage rate of change in a price level over time?
Inflation Rate
Which type of economy is most commonly used?
Mixed Economy
This refers to the quantity demanded and price move in opposite directions.
Law of Demand
What does the government use to determine how much a bank will pay back when they are borrowing money?
Interest Rates
What is a cause of deflation? (name 1)
Stock Market Failure
Reduction in Government Spending
Consumers increasing savings
High Interest Rates