Economic Systems
This type of economic system does things the way they've always been done
Traditional
Which direction does the DEMAND curve slope
DOWN
What do you call a prolonged rise in the general price levels
Inflation
The FED was created in
1913
A payment for which government receives neither good or services (Ex. Social Security, Welfare)
Transfer Payment
This type of economic system is controlled by the government
Command
Which direction does the SUPPLY curve slope
UP
What is the difference between Personal Income and Disposable Personal Income
Personal Income is before taxes, Disposable Personal Income is after taxes
The FED deals with this type of policy
The two most popular stock indexes
The Dow Jones - S&P 500
This type of economic system allows individuals to make their own decisions and own/control the factors of production
Market
This is a situation where the quantity DEMANDED is greater than the quantity SUPPLIED
Shortage
The dollar value of all final goods and services produced by a nation during the year
Gross Domestic Product or GDP
The number of regional banks under the FED
12
Which economist believed that when the economy was slow, the government should step in to stimulate demand
John Maynard Keynes (must at least know the last name)
This type of economic system combines characteristics of all the other systems
Mixed
This is a situation where the quantity SUPPLIED is greater than the quantity DEMANDED
Surplus
This prevents one company from dominating their industry
Sherman Anti-Trust Act
What is the main purpose of a LOOSE money policy
to encourage growth
What are the 4 types of interest?
Simple, Compound, Fixed, Variable
What are the four factors of production
land, labor, capital and entrepreneurship
What do you call the price where the quantity demanded by consumers is equal to the amount producers are willing to supply
Equilibrium price
When a country can produce a good more efficiently than another country - When a country exports more than imports
Absolute Advantage - Trade Surplus
What is the main purpose of a TIGHT monetary policy
to control inflation
Market stock going up - Market stock going down
Nation's true output level after inflation
Government taking property w/ just compensation
Bull Market - Bear Market
Real GDP
Eminent Domain