Unit 1
What are the four factors of production?
What is inflation?
The rate of increase in prices over a given period of time
What is the US's current national debt?
$33.13 Trillion
Does the US have more imports/exports?
Imports
What is the driving force of economics?
Scarcity
The following describes which part of the business cycle:
- Lowest point of our GDP
- Highest unemployment
- The later stage of this phase is called a recession
Trough
Who starts and ends the federal budget process?
The president
What is comparative advantage?
The ability of a country to produce a good/service at a lower opportunity cost
Laissez-faire is part of which type type of economy?
Free market
What is a price ceiling?
Maximum legal prices for a good/service
Estate taxes and payroll taxes are what type of tax? (Federal, State, or Local)
Federal
What are two examples of protectionist policies?
Tariffs and Quotas
Who advocated for the freedom and agency of the proletariat?
Karl Marx
What is the dual mandate?
The Federal Reserve's goal of achieving maximum employment and maintaining stable prices.
What is COLA?
The cost of living adjustment - a way to adjust social security benefits to counteract inflation
What is outsourcing?
The business practice of hiring workers or companies outside of one's own business
What is structural scarcity?
Unequal access to resources among the population
Name all five shifters of demand.
Tastes, Income, Market/Buyer Size, Expectations, and Related Goods
Which type of property has the highest incentive for conservation?
Private property
What is a consequence of globalization?
Loss of domestic jobs, increased income inequity, and more power to big companies