The crisis of credit
Who got effected from the crisis of credit?
Everyone
What is a command economy?
This is where the government controls the businesses and people don't get the freedom to start their own.
Resources that are found in nature
Natural resources
What does unemployment rate mean?
The percentage of people (in the US) who have a job.
How is GDP related to unemployment rate?
The higher one is the lower the other is.
How did the crisis of credit end up affecting house marketing?
It went way down
What is a market economy?
People get the freedom to start their own businesses and get the freedom to make their own prices
Type of resource that involve the people making the goods and services.
Labor resources
What is the difference from deflation and inflation?
Inflation means a general increase in the price of goods and services
Deflation means a general decrease in the price of goods and services
What would you expect to see at a prosperity?(With GDP and unemployment rate)
GDP to be at a all time high and unemployment at a all time low.
How did the price of the house dropping affect the investors?
They were in millions sometimes billions of dollars in debt
What does market economy have that command economy doesn't?
Competition
A type of resource that produce the resources such as building, computers and equipment.
Capital resources
What are the 4 stages of the Business Cycle?
1.Propersity
2.Recession
3.Depression
4.Recovery
What are some major events that could occur that makes our economy rise?
Technology advances, higher wages and more people have jobs.
Why did investors stop buying the treasury bills?(This was very safe investments)
The risker it is the more money they could make
What are some countries that follow command economy?
North Korea, Cuba and Belarus
A resource that shows us the scarcity of resources and the opportunity cost of the resources
Economic resources
What are the different types of GDP?
1.Nominal GDP
2. Real GDP
3.GDP per capita
What major events could make a decline in our economy?
The stock market crashes, people lose jobs, lower wages and if a pandemic happens.
What did people with sub-prime mortgages do?
They refused to pay them so the person collecting their mortgage got the house.
What are some countries that follow market economy?
USA, Canada, New Zealand, Australia, Switzerland, UK, Ireland and Singapore.
A type of resource that are used by people that recognize a opportunity and then start a business
Entrepreneurial resources
What are the 5 economic indicators to measure a economy?
1.GDP
2.Standard of living
3.Unemployment rate
4.Inflation/deflation
5.National debt
Where would prosperity, recession, recovery and depression be on a graph
1.Prosperity would be at the highest point of the graph
2.Recession is where it is dipping down in the graph
3.Recovery would be going up from where the lowest point on the graph is
4.Depression would be the all time low on the graph