fundamental economic problem of having seemingly unlimited human wants in a world of limited recources
What is scarcity
100
the amount of a good or service offered for sale
What is suppy
100
the total value of goods produced and services provided in a country during one year
What is gross domestic product
100
is the total demand for finals good and services in an economy at a given time.
What is aggregate demand
100
is when the price of one country's currency is described in terms of another county's currency
What is foreign exchange rate
200
loss of potential gain from other alternatives when one alternative is chosen
What is opportunity costs
200
the desire of purchasers or consumers for a particular commodity, good or service
What is demand
200
it includes all of private and public consumption, government outlays, investments and exports less imports that occurs within a defined territory
what does gross domestic product include
200
the total supply of good and services produced within an economy at a given overall price level in a given time period
What is aggregate supply
200
the more it imports the greater the supply of pound onto the foreign exchange market
What is the impact on imports in foreign exchange
300
someone that does more of a product and the best of doing something
What is absolute advantage
300
is a fundamental principle of economic theory which states that, all else equal, an increase in quantity supplied
What is law of suppy
300
the total value of goods produced and services provided by a country during one year, equal to the GDP plus the net income from foreign investments
What is gross national product
300
is by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy
What is fiscal policy
300
in general terms, a weaker currency will stimulate exports
What is the impact on exports in foreign exchange
400
someone who can make the product more eddicient
What is comparative advantage
400
a microeconomic law that states, all other factors being equal, as the price of a good or service increases, consumer demand for good or service will decrease
What is law of demand
400
it includes all income earned by American residents and businesses, regardless of where they are made
What does gross national product include
400
is a economic theory that holds that, by lowering taxes on corporations, government can stimulate investment in industry and thereby raise production, which will turn, bring down prices and control inflation
What is supply side economics
400
first we need to decide whether to graph for flows of the home currency or flows of the foreign currency
How do we draw the foreign exchange graph
500
Is an analysis of the alternative combinations of two goods that an economy can produce with existing resources and technology in a given period
What is production possibilities curve
500
a state in which opposing forces or influence are balanced
What is equilibrium
500
it excludes the value of products made by foreign companies within the reporting country
What does gross national product exclude
500
is when a government's total expenditures exceed the revenue that is generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits
What is deficit and debts
500
appreciation is an increase in the value of an asset over time and depreciation is a reduction in the value of a asset with the passage time.