Market Economy
Land, Labor, Capital, Entrepreneur
What are the factors of production?
When inflation is low and unemployment is highest, you are in this phase of the business cycle.
What is a trough?
Two tools the Government uses to influence economic growth.
What are taxes and spending?
Companies do this to save money however, it is often at the expense of domestic job.
What is outsourcing?
A printer and ink.
What are complements?
The value given up by not taking advantage of the next best alternative.
What is opportunity cost?
The average change in prices of consumer goods and services.
What is the Consumer Price Index (CPI)?
This is the largest area of spending for the Government made up of mostly Social Security, and Healthcare.
What is mandatory spending?
Placing them on imported goods protects the value of the domestic good.
What are tariffs?
The governments right to take private property for public use as long as they compensate you.
What is eminent domain?
Unlimited wants in the face of limited resources.
What is scarcity?
This reduces the purchasing power of your money over time.
What is inflation?
Your income is subject to a range of corresponding tax percentages.
What is the marginal tax rate?
Replacing NAFTA, this agreement has helped facilitate a more equal trade among the three North American Countries.
What is the US-Mexico-Canada Agreement (USMCA)?
When the Federal reserve raises or lowers interest rates or buys or sells bonds in the open market.
What is monetary policy?
Traditional, command, mixed, and free.
What are economic systems?
This committee meets to determine when to raise or lower interest rates or buy or sell bonds in the open market.
What is the Federal Open Market Committee (FOMC)?
Employers and employees pay this to ensure the welfare of the citizens of the nation. You need to have worked for at least 10 years to qualify for benefits.
What is social security?
The value of a countries imports verses exports.
What is a trade balance?
It is used as a cost-cutting measure for businesses looking to reduce their overhead costs by hiring a third party.
What is outsourcing?
People buy thick coats in November.
What is demand?
The Federal Reserve uses this to steer interests rates into their target range.
What is the interest on reserves?
What are intellectual property rights?
A country would want to know what they have a comparative advantage in so they would know what products to do this with.
What is specialize in?
Economic indicator that surveys how consumers are feeling about the economy.
What is UMSCENT?