The price of various items (rent, gas, milk, etc) or “market basket” around the country. The Bureau of Labor and Statistics takes the data and determines the average of those items for the country is called:
What is the consumer Price Index
100
Characteristics of Money are:
What is Portable, Divisible, Durable, Limited
100
The expansion or contradiction of the money supply (amount of loanable funds).
What is Monetary Policy
100
Each country produces the goods and services they do best and trade the excess for other goods and services
What is Specialization
100
Not all people support international trade. People known as Protectionists supports trade tariffs, quotas and other restrictions
What is Barriers to International Trade
200
Is an increase of inflation of 300 %/year:
What is Hyperinflation
200
Any substance that functions as a medium of exchange, a measure of value and a store of value is called:
What is Money
200
The Interest Rate the Fed charges banks to borrow money, “the whole sale price.”
What is Discount Rate
200
Are goods and services that a country buys from another country:
What is Imports
200
North American Free Trade Agreement (NAFTA), European Union (EU), World Trade Organization (WTO), International Monetary Fund (IMF), Organization of Petroleum Exporting Countries (OPEC – an organization/cartel that agree to control prices of oil) are examples of:
What is Trade Agreements
300
Is an increase in prices AND increases in unemployment with NO economic growth:
What is Stagflation
300
Money has NOT been backed by gold since:
What is 1939
300
The percentage of bank deposits a bank CANNOT loan to customers:
What is Reserve requirement
300
When a country can produce a product more efficiently than another country:
What is Absolute Advantage
300
exports = imports. Often hard to achieve
What is Trade Balance
400
There is an increase in the cost to make the item (wages, gas, resources, etc); that cost is added to the price of the item for the consumer = increase in prices
What is Cost Push Inflation
400
Has been established as legal tender by the government:
What is Currency
400
Insures each depositor of each bank – up to $250,000
What is FDIC/Federal Deposit Insurance Corporation
400
Are goods and services that a country produces and sells to other nations:
What is Exports
400
When a country imports more than it exports. The US has had a trade deficit since the 1970s:
What is Trade deficit
500
Demand is up due to low unemployment. Everyone is working, so people are buying, causes a shortage of goods = increase in prices
What is Demand Pull Inflation
500
The total of all currency, demand deposits, traveler’s checks
What is M1
500
The buying or selling of bonds (government loans) by the Fed to increase or decrease the money supply.
What is Bonds on the Open Market
500
The ability to produce an item/product with less opportunity costs (or what they have to give up making another product).