Macroeconomics

Question 0

Import

Answer 0

A good or service brought in from another country for sale

Question 1

Export

Answer 1

A good or service sent to another country for sale

Question 2

Balance of Trade

Answer 2

A relationship between the value of a country’s exports and the value of its imports

Question 3

Absolute advantages

Answer 3

The ability to produce more of a given product using a given amount of resources

Question 4

Comparative advantage

Answer 4

The ability to produce a product most efficiently given all other products that could be produced

Question 5

Inflation

Answer 5

A general increase in prices across an economy

Question 6

Recession

Answer 6

A prolonged economic contraction

Question 7

Stagflation

Answer 7

A decline in real GDP combined with a rise in the price level

Question 8

Aggregate demand

Answer 8

The amount of goods and services in the economy that will be purchased at all possible pice levels

Question 9

Aggregate supply

Answer 9

The total amount of goods and services in the economy available at possible price levels

Question 10

Monetary policy

Answer 10

The actions that federal reserve system takes to influence the level of real GDP and th rate of inflation in the economy

Question 11

Fiscal policy

Answer 11

The use of government spending and revenue collection to influence the economy

Question 12

Easy money policy

Answer 12

A monetary policy that increases the money supply

Question 13

Tight money policy

Answer 13

A monetary policy that reduces the money supply

Question 14

Proportional tax

Answer 14

A tax for which the percentage of income paid in taxes remains the same at all income levels

Question 15

Regressive tax

Answer 15

A tax for which the percentage of income paid in taxes decreases as income increasese

Question 16

Progressive tax

Answer 16

A tax for which the percentage of income paid in taxes increases as the income increases

Question 17

National debt

Answer 17

The total amount of money that the federal government ows to bond holders

Question 18

Budget deficit

Answer 18

A situation in which budget expenditures exceed revenue

Question 19

Budget surplus

Answer 19

A situation in which budget revenues exceed expenditures

Question 20

Consumer price index

Answer 20

A price index determined by measuring the price of a standard group of goods meant to represent the “market basket” of a typical urban consumer

Question 21

Full employment

Answer 21

The level of employment reached when there is no cyclical unemployment

Question 22

Frictional unemployment

Answer 22

Type of unemployment that occurs when people take time to find a job

Question 23

Structural unemployment

Answer 23

Type of unemployment that occurs when workers skills do not match those needed for the jobs available

Question 24

Cyclical unemployment

Answer 24

Unemployment that rises during economic down turns and falls when economy improves

Question 25

Gross national product

Answer 25

The annual income earned by a nations companies and people

Question 26

Gross domestic product

Answer 26

The dollar value of all final goods and services produced within se country’s borders in a given year

Question 27

Durable goods

Answer 27

Those goods that last for a relatively longtime, such as refrigerators cars and dvd players

Question 28

Non durable goods

Answer 28

Those goods that last s short period of time such as food

Question 29

Intermediate goods

Answer 29

Products used in the production of final goods

Question 30

Multiplier effect

Answer 30

The idea that every one dollar change in fiscal policy creates a change greater than one dollar in the national income

Question 31

Depreciation

Answer 31

1. The loss of the value of capital equipment that results from normal wear and tear 2. A decrease in value of currency

Question 32

Tariff

Answer 32

A tax on imported goods

Question 33

Quota

Answer 33

The share or proportional part of the total that is requires from a certain group

Question 34

Required reserve ratio

Answer 34

The craft ok of deposits that banks are required to keep in reserve