This forces people to trade because there are only a limited amount of resources and it leads to trade-offs.
What is scarcity?
100
This is the inverse relationship between price and the quantity demanded.
What is the Law of Demand?
100
Gross Domestic Product.
What does GDP stand for?
100
The economy will fix itself without government interaction.
What is classical economics?
100
The value of a currency going up.
What is appreciation?
200
Land, labor, capital, and entrepreneurship.
What are the four factors of production?
200
Tastes and preferences, number of consumers, price of related goods, income, and expectations.
What are the Five Shifters for demand?
200
Used items, non-market transactions, items not produced in the current year, public transfer payments, private transfer payments, stocks, and bonds.
What is excluded in GDP?
200
The economy will fluxuate and the government will intervene to speed up the process of getting back to full employment.
What is keynesian economics?
200
The value of a currency going down?
What is depreciation?
300
Decisions today have consequences tomorrow, part of thinking is trying to imagine all future consequences.
What is the concept of Principle 7: Future Consequences Count?
300
As you consume a product, you will eventually get less and less satisfaction from each unit you consume.
What is the Law of Diminishing Marginal Utility?
300
It goes in the investment section.
What section does a new home go under?
300
A very sudden change in prices.
What is a supply shock?
300
Inflation, tastes and preferences,interest rates, national income, and economic and political stability.
What are the five shifters of foreign exchange?
400
A Scottish political economist and philosopher who became well known for his book about free trade and an economic system about human nature and social dynamics.
Who is Adam Smith?
400
Changes in price motivate consumers to buy relatively cheaper substitue goods.
What is the substitution effect?
400
C+Ig+G+Xn
What is the equation for GDP?
400
People are losing their jobs while prices are rising.
What is stagflation?
400
Exports will increase.
What happens to exports when currency value goes down?
500
The nation specializing in the production of a product who is the least-cost producer compared to other nations.
What is specializing according to comparative advantage?
500
The amount of people who want that supply, number of suppliers, price of other goods, and technology.
What factors determine supply?
500
GDP+ NR
What is the equation for GNP?
500
The government will spend money and lower taxes.
What is expansionary fiscal policy?
500
Import will increase.
What happens to imports when value of currency goes up?