Government And Banking/economic Principles

Front 1

This is the principle means of measuring domestic production in the United States. Knowing this the countries GNP (Gross National Product can be determined.

Back 1

Gross Domestic Product (GDP)

Front 2

The four components used to calculate the GDP (Gross Domestic Production) in the U.S.

Back 2

The sum of Consumption, investment, government purchases, and net exports is used to calculate GDP. Analysts look at these components figures quarterly in order to determine the direction of the economy.

Hint 2

The total market value of all the goods and services produced within the borders of a nation during a specified period.

Front 3

The process of paying (or collecting) taxes for the government whether personal or any type of profitable organization exists.

Back 3

Taxation

Front 4

This is commonly referred to as an increase in price level of goods

Back 4

Inflation

Hint 4

A persistent increase in the level of consumer prices or a persistent
decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services

Front 5

How is the inflation index calculated?

Back 5

The inflation rate is calculated by measuring the change of
price via the price index by measuring these three sources:

1) The consumer price index

2) The producer price index

3) The implicit price index

Front 6

The opposite of inflation. It happens when the prices of goods go down, the CPI goes down.

Back 6

Deflation

Hint 6

A persistent decrease in the level of consumer prices or a persistent
increase in the purchasing power of money because of a reduction in available currency and credit

Front 7

This is the major determiner of the cost of goods and services. When supply is greater than demand, and the cost of a good or service decreases then demand is greater than supply. Essentially the cost for these goods will increase.

Back 7

Supply and Demand

Front 8

What factors are used in determining demand?

Back 8

1) Tastes, customs, and preferences of a given market.
2) Income level.
3) Quality of goods & services being offered.
4) The availability of a competitor’s goods & services

Front 9

What are the factors that affect supply?

Back 9

1) Production capacity.

2) Production costs.

3) Amount of competition in a given market.

Front 10

Involves figuring out the best way to get things done (preferred
methods is the official name), followed by educating and evaluating employees by a set of
determined standards.

Back 10

Labor-management

Front 11

An extended decline in general business activity, typically three
consecutive quarters of falling real gross national product

Back 11

Recession

Front 12

The amount of a commodity available for meeting a demand or for purchase at a given price

Back 12

Supply

Front 13

The amount of a commodity or service that people are ready to buy for a given price.

Back 13

Demand

Front 14

The amount where quantity supplied equals quantity demanded;

Back 14

Equilibrium

Hint 14

yields equilibrium price and equilibrium quantity

Front 15

The tendency for a continuing application of effort or skill toward a particular project or goal to decline in effectiveness after a certain level of result has been achieved.

Back 15

Law of diminishing returns

Front 16

Commercial exchange (buying and selling on domestic or international markets) of goods and services

Back 16

Trade

Front 17

To send or transport (a commodity, for example) abroad, especially for
trade or sale

Back 17

Export

Front 18

To bring or carry in from an outside source, especially to bring in (goods
or materials) from a foreign country for trade or sale

Back 18

Import