Flashcards in Economics Final Test Deck (21)
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1
Who suffers from free trade?
The producers of the product.
2
What is the true measure of a Nations wealth?
Per Captia GDP
3
Why does America Import many foods and Drinks?
domestic inability to produce some goods; Ex: American businesses cannot profitably produce sufficient quantities of bananas, diamonds, coffee, and teakwood
4
Who ultimately pays for foreign governmental subsides?
he nation’s taxpayers or foreign taxpayers
5
Name and define GDP?
Gross domestic product; total dollar value of all final goods/services a nations industries produce in a year
6
Who are the 4 groups whose purchases make up GDP?
Households, Businesses, Government, and Foreign Buyers.
7
What is NAFTA?
North American Free Trade agreement
8
Why does a nation collect economic data?
To predict the future of economics and examine trends a
9
Why is the trade deficit not a problem?
Cheaper, better quality, lower foreign capital costs.
10
Who suffers from protectionist legislation?
Domestic Consumers
11
What do you call the total capital investments of businesses and their unplanned inventories?
Gross Private domestic investment
12
What is a tariff?
Tax on an imported good
13
What is a subsidy?
Governments payment to a producer to help with manufacturing costs
14
What are the 3 categories of household consumption?
Consumer durable, Consumer Non-durable, and Consumer Services
15
Example of a consumer durable?
Cars, Furniture, Major Appliances
16
Example of a consumer non-durable good
Shoes, Soap, Gasoline
17
Example of a consumer Service
Haircuts, Income tax participation, and Education
18
What is a protectionist?
They say that we BUILD up tariffs to build more jobs, unemployment goes up
19
What is GDPI? Explain
Gross Private Domestic Investment... It is the sum of all business spending on capital investment and unplanned inventories.
20
Which Category of goods and services is used to arrive at the GDP?
Final goods and services
21
