The state of being scarce or in short supply; shortage.
What is scarcity.
100
The "backbone" of a market economy.
What is Supply and Demand
100
The total value of goods produced and services provided in a country during one year.
What is Gross Domestic Product (GDP)
100
Key resources, productivity and government action cause a shift in this macroeconomic curve.
What is Aggregate Supply.
100
Interest the fed charges on loans to financial institutions.
What is the discount rate
200
Land, Labor, Capital and Entrepreneurship.
What is the Factors of Production
200
An amount of something left over when requirements have been me.
What is a surplus.
200
Someone who lives off of a fixed income rate would be hurt by this type of inflation
What is unanticipated inflation
200
The practice of economics with the belief that the economy will fix itself.
What is classical economics
200
The percentage amount of reserves on institution must hold in their bank.
What is the reserve requirement.
300
The benefits you could have received by taking an alternative action.
What is Opportunity Cost
300
A state in which opposing forces or influences are balanced.
What is Equilibrium
300
(# of unemployed / labor force) = ?
What is the unemployment rate
300
The increase in government spending, decrease in taxes, or both, to increase aggregate demand.
What is the expansionary policy
300
(nominal GDP x 100) / price index = ?
What is the Real GDP of that year (year 1)
400
An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state. Or another word for free enterprise.
What is Capitalism
400
This curve slopes downwards, because people are willing to purchase more items when the price is lower.
What is a Demand Curve
400
Consumption + Government Expenditures + Investments + Exports + Foreign Production by U.S. Companies – Domestic Production by Foreign Companies = ?
What is Gross National Product (GNP)
400
The amount of your income that you consume is found by this equation consumption/disposable income. Which multiplier is this?
What is the Average Propensity to Consume (APC)
400
Goods used in the making of a final product
What are intermediate goods.
500
Laissez-faire philosophies, such as minimizing the role of government intervention and taxation in the free markets, are among the ideas of this philosopher of the 1700's.
Who is Adam Smith
500
A law of economics stating that as a person increases consumption of a product - while keeping consumption of other products constant.
What is Diminishing Marginal Utility
500
This measures the changes in the price of goods and services bought by consumers.
What is the consumer price index (CPI)
500
These two multipliers share the same equation.
What is the investment multiplier and the gov spending multiplier
500
Unemployment directly related to swings in the business cycle, recessions, etc.