Basic Economics

Front 1

The following statements describe___________economics: When demand falls, the government should funnel money into the economy through increased spending, decreasing taxes, and increasing public works programs. When demand rises too high, the government should attempt to take money out of the economy through raising taxes or decreasing government spending.

Back 1

Keynesian

Front 2

Karl ________ is known for his radical socialist model.

Back 2

Marx

Front 3

The Gross ________ Product is the market value of all final goods and services of the citizens and businesses of a country, regardless of where in the world the output is produced.

Back 3

national

Front 4

______ is a political theory that advocates industry being owned by the government.

Back 4

socialism

Front 5

Economic ______ is affected by both positive analysis and normative analysis.

Back 5

policy

Front 6

Although the free market may appear chaotic and unrestrained, Adam Smith hypothesized it is actually led by a(n) “______ hand.”

Back 6

invisible

Front 7

British economist John Maynard _____ (1883-1946) theorized that laissez faire economics do not work in modern capitalistic societies and instead, government intervention in the economy may be necessary; this economist’s theories greatly influenced Western economic policy in the Great Depression era and beyond.

Back 7

Keynes

Front 8

Aggregate ______ is the total supply of good and services produced in an entire economy for a given time.

Back 8

supply

Front 9

The production _______ curve represents different combinations of the quantities of two goods or services that a firm, person, or economy can produce by reallocating production resources from one good or service to the other.

Back 9

possibilities

Front 10

_____ economics work in the following manner: the government cuts tax rates and decreases regulations in the business sector and as a result, companies are able to hire more employees, have more money to use toward growth, and pay higher wages. In turn, money flows back to the government in the form of tax revenue as more people are employed and as workers earn more money (both of which offset tax cuts).

Back 10

supply-side

Front 11

_____ is an economic system based on private ownership of capital.

Back 11

capitalism

Front 12

_____ Capitalism is a combination of capitalism and government intervention in order to provide a higher standard of living for more people.

Back 12

Welfare

Front 13

Adam_____ , the Scottish economist known as the father of modern economics, wrote an influential book – The Wealth of Nations.

Back 13

Smith

Front 14

John Maynard _____, a British economist, is widely known as the father of modern macroeconomics.

Back 14

Keynes

Front 15

An increased amount of one good or service that is produced results in _____ amounts of the other good or service can be produced.

Back 15

decreased

Front 16

The _____ Price Index measures the total cost of goods and services purchased by a typical consumer.

Back 16

consumer

Front 17

_____ is a rise in the price of goods or services over time.

Back 17

inflation

Front 18

The _____ rate is the number of unemployed as a percentage of the labor force.

Back 18

unemployment

Front 19

____ is the study of the allocation of limited resources.

Back 19

economics

Front 20

____ is another way of saying that humans, who have unlimited needs and wants, live in a world of finite resources.

Back 20

scarcity

Front 21

The GDP Per ____is calculated by dividing the GDP by the number of people.

Back 21

capita

Front 22

Economic _____, which is normally measured by the rate the Gross Domestic Product (GDP) is increasing, is the increase of goods and services produced by an economy.

Back 22

growth

Front 23

_____is an economic school of thought supported by economists such as Arthur Laffer and utilized in the U.S. in the early 1980s during the period of high inflation and high unemployment rates (known as stagflation); this theory supports the creation and use of incentives such as deregulation and cutting taxes in order to encourage people to produce goods and services.

Back 23

supply side

Front 24

The Gross Domestic ____is the value of all final goods and services made within the borders of a nation in a year.

Back 24

product

Front 25

John Maynard Keyes was a believer in the______ economy.

Back 25

mixed

Front 26

____ Demand is the total demand for final goods and services in an economy at a given time and price level.

Back 26

aggregate