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18 Cards in this Set
- Front
- Back
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Factors of production |
Land labor capital.. Land is natural resources, like gold in production. Labor is the work performed... Capital is the tools used to produce good |
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Opportunity cost |
The loss of potential gain when one alternative is chosen |
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Quantity demand |
The quantity people are willing to buy at a particular price and time If changes everything but the price. |
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Absolute advantage |
The ability of an individual or group to carry out a particular economic activity more efficiently than another grpup |
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Types of unemployment |
Clyclical, frictional and structural Structural is absence of demand for that worker Cyclical is lost when the economy is in a recession Frictional is because the turnover in labor market and time it takes for workers to find new jobs |
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3 functions of money |
A medium of exchange, a store of value. And a unit of account |
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Inflation and types |
Increase in general price of goods Cost push and demand pull |
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Recession |
A period of temporary economic decline when industry activities decline |
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Minimum wage |
7.25 a way to satisfy basic living needs |
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Price floors |
Prices dropping to equilibrium and and demand goes up and price goes down. |
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Goal of the government in economy |
To be stable |
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How to fight recession |
2 consecutive quarters is a recession.. To fight it put more money into the system and lower taxes |
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Tight contractionary monetary policy |
Raising discount rate to put out less loans, and less money we have. |
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Loose / expansionary fiscal policy |
Puting money into the system to lower taxes and increasing government spending |
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Trade how it works |
Trade invloves imports and exports tarrifs and specialization |
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Excessive reserve |
Banks keep money to keep loans.. |
