Fundamentals
What is Scarcity?
the idea that the demand for a good or service is greater than the availability of that good or service
what is the definition for Law of demand
a higher price leads to a lower quantity demanded and that a lower price leads to a higher quantity demanded
What is the top of the waves in a Business cycle called
What is Peak
define seasonal unemployment
occurs when people lose their jobs due to a decrease in demand for labor at certain times of the year
What is a Budget?
A financial plan that estimates income and expenses for a specific period of time.
What is the term for potential forgone profit from a missed opportunity?
Opportunity Cost
what is the difference in price ceiling and price floor?
A price ceiling keeps a price from rising above a certain level—the “ceiling”. A price floor keeps a price from falling below a certain level—the “floor
What is the lowest point in a wave on a business cycle graph called
What is Trough
what is the highest point of the supply/demand curve
peak
A type of loan used for real estate, an agreement between you and a lender that gives the lender the right to take your property if you don't repay the money you've borrowed
Mortgage
What are non-scarce resources?
the idea that resources are limited and cannot meet human needs and wants
What is real GDP?
an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year
Which way does a Aggregate Supply curve need to shift to be positive
What is to the right
what is it when prices rise over a certain period of time
inflation
What is the difference between Progressive Income Tax and Regressive Income Tax?
A progressive tax system puts a greater tax burden on the wealthy, whilst the regressive tax system puts a burden on the poor.
What is a Latin phrase that generally means "all other things being equal"?
Ceteris Paribus
define supply
the total amount of a specific good or service that is available to consumers
What is it called when a business cycle constantly declines for more than 6 months
What is recession
what is unemployment rate
the percentage of people in the labor force who are unemployed
How do banks earn profits?
They earn profits through earning interest on loans.
What is Choice?
the act of selecting one option over another, or the ability to choose between a range of possibilities
What are the tools of fiscal policy?
Income (direct taxes)
Govt spending
expansionary fiscal policy
contractionary fiscal policy
what is aggergate supply and demand
what does macroeconomics cover?
the entire economy
Which type of investment has a higher risk, savings account or CD (certificate of deposit)?
CD (certificate of deposit) has the higher risk.