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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

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

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