Economics Final Test Flashcards

(21 cards)

1
Q

Who suffers from free trade?

A

The producers of the product.

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2
Q

What is the true measure of a Nations wealth?

A

Per Captia GDP

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3
Q

Why does America Import many foods and Drinks?

A

domestic inability to produce some goods; Ex: American businesses cannot profitably produce sufficient quantities of bananas, diamonds, coffee, and teakwood

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4
Q

Who ultimately pays for foreign governmental subsides?

A

he nation’s taxpayers or foreign taxpayers

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5
Q

Name and define GDP?

A

Gross domestic product; total dollar value of all final goods/services a nations industries produce in a year

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6
Q

Who are the 4 groups whose purchases make up GDP?

A

Households, Businesses, Government, and Foreign Buyers.

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7
Q

What is NAFTA?

A

North American Free Trade agreement

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8
Q

Why does a nation collect economic data?

A

To predict the future of economics and examine trends a

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9
Q

Why is the trade deficit not a problem?

A

Cheaper, better quality, lower foreign capital costs.

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10
Q

Who suffers from protectionist legislation?

A

Domestic Consumers

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11
Q

What do you call the total capital investments of businesses and their unplanned inventories?

A

Gross Private domestic investment

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12
Q

What is a tariff?

A

Tax on an imported good

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13
Q

What is a subsidy?

A

Governments payment to a producer to help with manufacturing costs

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14
Q

What are the 3 categories of household consumption?

A

Consumer durable, Consumer Non-durable, and Consumer Services

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15
Q

Example of a consumer durable?

A

Cars, Furniture, Major Appliances

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16
Q

Example of a consumer non-durable good

A

Shoes, Soap, Gasoline

17
Q

Example of a consumer Service

A

Haircuts, Income tax participation, and Education

18
Q

What is a protectionist?

A

They say that we BUILD up tariffs to build more jobs, unemployment goes up

19
Q

What is GDPI? Explain

A

Gross Private Domestic Investment… It is the sum of all business spending on capital investment and unplanned inventories.

20
Q

Which Category of goods and services is used to arrive at the GDP?

A

Final goods and services

21
Q

Who is Simon Kuznets and what did he implement for government?

A

His contribution to measuring national income and pioneering research into the effect of population growth on the economic development of a country.