The Foundations of Economics
This is the study of how people satisfy unlimited wants with limited resources.
What is the problem of scarcity?
In this system, private and public sectors share control over resources.
What is a mixed economy?
When demand increases and supply remains constant, prices generally do this.
What is rise?
This measures changes in the cost of a basket of goods purchased by households.
What is CPI?
Cutting interest rates is an example of this type of policy.
What is monetary policy?
This term refers to the study of individual markets and firms.
What is microeconomics?
In a command economy, prices are usually set by this.
What is the government?
This occurs when supply exceeds demand.
What is a surplus?
A rapid and widespread increase in prices is called this.
What is hyperinflation?
This U.S. agency is responsible for implementing monetary policy.
What is the Federal Reserve?
The study of how to increase resources and create conditions for better use of them.
What is resource development?
This Scandinavian country is often cited as a successful example of democratic socialism.
What is Sweden?
The point where supply and demand curves intersect is called this.
What is equilibrium?
This measures the percentage of people actively seeking work but unemployed.
What is the unemployment rate?
Government borrowing to cover deficits can lead to this.
What is national debt?
This Scottish economist believed that freedom and the right to keep profits lead to economic survival.
Who is Adam Smith?
This economic system emphasizes freedom of choice and limited government involvement.
What is free-market economy?
This type of competition has many sellers with similar but not identical products.
What is monopolistic competition?
When inflation slows down but still remains positive, it is called this.
What is disinflation?
A prolonged period of high unemployment and economic stagnation is called this.
What is a depression?
This process turns self-directed gain into benefits for the entire community.
What is the invisible hand?
This negative consequence of socialism describes talented individuals leaving for other countries.
What is brain drain?
In perfect competition, sellers produce this kind of product.
What is a homogenous or identical product?
The combination of slow growth and rising prices is called this.
What is stagflation?
This policy involves changing tax rates to influence demand.
What is fiscal policy?