Fundamentals
This occurs when the marginal benefits of an action equal or exceed the marginal costs.
What is a rational decision?
This economic model illustrates interdependence between households and businesses.
What is the circular flow diagram?
This is used to measure inflation in an economy.
What is the Consumer Price Index? (CPI)
Most international trade takes place because of a ______________ advantage in the production of a good or service.
What is comparative advantage?
Which type of financial institution is MOST likely to require a membership and offer lower rates and special perks to their members?
What are Credit Unions
A basic condition that exists when unlimited wants exceed limited productive resources.
What is scarcity?
An increase in price results in an decrease in the quantity demanded. This is the law of
What is demand?
The total dollar value of all goods and services produced within a country's borders in a given year.
What is GDP?
Occurs when a country imports more than it exports.
What is a trade deficit?
A sales tax is this type of tax.
What is a regressive tax?
The next best alternative give up when individuals, businesses, and governments confront scarcity by making choices?
What is Opportunity Cost?
Which market structure is dominated by a few sellers?
What is an oligopoly?
The tools of fiscal policy include government spending and ________________.
What are taxes?
A total ban on trade with a country.
What is an embargo?
The kind of interest charged by credit cards.
What is compound interest?
What to produce? How to produce? For whom to produce?
What are the 3 basic economic questions?
A price set by the government that creates a shortage.
What is a price ceiling?
What is contractionary monetary policy? (tight money)
European Union, NAFTA & ASEAN
What are trading blocs?
Type of insurance a person needs if they wish to continue to receive a paycheck while they are out of work due to an injury?
What is Disability Insurance?
This economic model can be used to analyze trade-offs, opportunity cost, growth & efficiency.
What is the Production Possibilities Curve?
Changes in related goods, income, consumer expectations, preferences/tastes and number of consumers
What are the determinants (shifters) of demand?
Occurs when the government spends more money than it collects in taxes during a one year period.
What is a budget deficit?
What is an exchange rate?
The money that you pay to an insurance company each month to transfer risk.
What is a premium?