Macroeconomics Jeopardy

Economic Instability

100

What is inflation?

Rise in price

200

How do you measure unemployment rate?

No. of unemployed persons over Civilian labour force

300

What are the different types of unemployment? Explain.

Frictional; Structural; Cyclical; Seasonal.

400

What is the highest point on the business cycle?

Peak

500

What is the order of the business cycle starting at the Peak?

Contraction (or recession)

Trough

Explansion

Economic Stabilization Policies

100

Who works together to determine the Federal Budget?

The President & Congress

200

What is money?

Medium of Exchange

300

What is a fiscal policy?

use of government spending and taxation to regulate the economy

400

What are the characteristics of an expansionary policy?

Lower federal taxes, increase spending, award subsidies

500

What are monetary policies?

Focuses on money supply- Federal Reserve

International Trade

100

Why do countries trade?

they cannot produce everything their citizens need or want

200

What is comparative advantage? Give an example.

Country's ability to produce a given product relatively more efficiently than another country by doing it at a lower opportunity cost.

300

What is NAFTA?

North American Free Trade Agreement. agreement signed in 1933 to reduce tariffs and increase trade among the United States, Canada, and Mexico.

400

What are twodifferent trade barriers? Explain.

Tariffs. Quotas.Embargo

500

What is one negative result of global trade?

Environmental destruction, outsourcing, working conditions