Basic Concepts
What are physical items that can be bought or sold?
Goods
What happens to demand when price goes up, all else equal?
It decreases
What is paper money and coins used in a country?
Currency
What is a tax on imported goods called?
Tariff
What is the term for countries depending on each other for goods and services?
Interdependence
What is the basic economic problem of limited resources and unlimited wants called?
Scarcity
What happens when demand increases but supply stays the same?
The price goes up
What is to store money, give loans, and offer financial services?
The main role of banks
What is the way governments collect money from citizens and businesses?
Taxation
What is the exchange of goods and services between countries?
International trade
What is the cost of producing one more unit of a good?
Marginal Cost
If a new phone becomes a trend, what happens to its demand?
It increases
What is the general rise in prices over time?
Inflation
What is the name of government spending more than it collects in taxes?
Budget Deficient
What is any rule or law that limits free trade, like a tariff or quota?
Trade Barrier
What do we call the next best alternative given up when making a decision?
What is it called when the quantity supplied is greater than the quantity demanded?
Surplus
What is a national bank that manages a country’s money and interest rates?
A central bank
What does GDP stand for?
Gross Domestic Product
What organization helps countries trade with each other and settle disputes?
World Trade Organization
What type of economy is controlled mostly by individuals and private businesses?
Market Economy
What is the term for the point where supply equals demand?
Equilibrium
What is the interest rate at which banks lend money to each other overnight?
Federal funds rate
What is the difference between national debt and budget deficit?
Debt is the total amount owed
Deficit is when spending exceeds revenue in one year
What is the value of one nation’s currency compared to another's called?
Exchange Rate