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