Unit 1
What is the lowest part in the business cycle?
Trough
Rate of increase in prices over a given period of time (expressed as a percentage)
Inflation
Government spending > government revenue
Deficit
Business practice of hiring workers outside of ones own business to perform services that were traditionally performed by the country's workers.
Composite measure of a nations social and economic development (Education, Life Expectancy, GNI)
HDI Human Development Index
What is it called when the government sets a max legal price for a good/service
Price Ceiling
What is the value of all goods and services produced within a country's borders?
GDP
Which type of spending includes expenses for social security and medicare?
Mandatory Spending
Trade policy involving the protection of human rights and the environment
Values first trade
(Market Structure) Many sellers with similar goods compete with market share, firms can easily enter and exit the market
Competitive Market
What is the Law of Demand?
An increase in price = a drease in demand
Hamiltons solution to help the nation recover from the war
First bank of the united states
Total tax revenue divided by GDP : Measures tax income relative to the size of the economy
Tax to GDP Ratio
The trade agreement that began July 1st 2020 that replaced NAFTA
USMCA
Difference between what a buyer is willing to pay and what they actually pay
Consumer surplus
Term for the satisfaction gained from consuming a good or service
Which comittee is responsible for open market operations?
FOMC (federal open market comittee)
Legal rights given to an inventor or creator to protect his creation for a certain period of time.
Intellectual Property Rights
Limits on the amount of goods imported (favors developed countries)
Quotas
Policy that seaks to stimulate economy by boosting demand, for example, lowering federal funds rates.
Expansionary policy
What is it called when there is a large number of small companies and the prices of goods and services are beyond the buyer and sellers control
perfect competition
How many people are on the board of governers?
7
Country A can produce 8 T-shirts with the opportunity cost of 2 basketballs. Country B can produce 10 T-shirts with opportunity cost of 5 basketballs. Who has the comparative advantage in T-shirts?
Country A
Used in monetary policy, this is simultaneous purchase in sale of funds in order to profit from interest rates
Arbritrage