economics

Question 1

recession

Answer 1

economy running slowly (prices falling, unemployment rising)

Question 2

solution for recession

Answer 2

stimulate economy by increasing spendings / money supply

Question 3

expansion

Answer 3

economy is running fast (prices rising, production increases)

Question 4

solution for expansion

Answer 4

slow down economy by decreasing spending / money supply

Question 5

history of US economy

Answer 5

trend is upward growth but going up and down between recession and expansion

Question 6

economy is measured by

Answer 6

GDP

Question 7

what does GDP stand for

Answer 7

gross domestic product

Question 8

explain GDP

Answer 8

money value of all goods/services produced in a year (US output)

Question 9

GDP equation

Answer 9

C + I + G + Ex - Im

Question 10

scarcity

Answer 10

reason why economic systems exist

Question 11

scarcity choice

Answer 11

how we manage our scare resources (a sacrifice involved)

Question 12

trade off

Answer 12

required when a choice is necessary (give to get)

Question 13

USA economic system

Answer 13

mixed market

Question 14

market

Answer 14

any space where buyers and sellers are allowed to interact freely

Question 15

market interactions are what determines the _____ and _____ of goods and services in economy

Answer 15

price and quantity

Question 16

law of demand

Answer 16

describes the behavior of buyers/consumers

Question 17

law of supply

Answer 17

describes the behavior of sellers/producers

Question 18

markets are self-________

Answer 18

regulating

Question 19

DEMAND: prices high

Answer 19

buyers will purchase less

Question 20

DEMAND: prices low

Answer 20

buyers will purchase more

Question 21

SUPPLY: prices high

Answer 21

sellers make more

Question 22

SUPPLY: prices low

Answer 22

sellers make less

Question 23

when demand increases…
price?
quantity?
shift?

Answer 23

price - goes up
quantity - goes up
shift - right

Question 24

when demand decreases…
price?
quantity?
shift?

Answer 24

price - goes down
quantity - goes down
shift - left

Question 25

when supply increases…
price?
quantity?
shift?

Answer 25

price - goes down
quantity - goes up
shift - right

Question 26

when supply decreases…
price?
quantity?
shift?

Answer 26

price - goes up
quantity- goes down
shift - left

Question 27

government can regulate the economy through

Answer 27

taxing, spending, and transfers

Question 28

banking system can regulate economy by controlling….

Answer 28

money supply and interest rates

Question 29

investors add to

Answer 29

gdp