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Flashcards in Quiz 3-5 Deck (108)
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1

What is a IQ ?

Import quotas

2

What does GDP stand for ?

Gross Domestic Product

3

What is V.E.R ?

Voluntary Export Restraints

4

If a GDP falls for 2 consecutive quarters, its called a what ?

Recession

5

Trade war

Escalating trade barriers

6

Name three durable goods in your home

Fridge, table, couch etc

7

Explain, in detail, what fracking is

It produces light crud, receiving oil from the ground with machines

8

M1 or M2 liquid assest

M1

9

M1 or M2 demand account

M1

10

M1 or M2 savings account

M2

11

M1 or M2 CD

M2

12

Name two reasons a country may devalue their currency

Increase exports and increase domestic spending

13

Name three things that might happen if a country devalues their currency

Increase unemployment
Slow economy
Growing debt payment
Decrease imports

14

How far apart should a expenditure approach and income approach be in discovering GDP

0%

15

Name the four parts of the business cycle

Expansion
Peak
Contraction
Trough

16

How does the government make more money ?

Taxation
tariffs
(Income tax)

17

What are intermediate goods ?

Materials used to make the final product

18

What happens to job growth in a recession ?

Unemployment increases

19

Who's interest does the business have as a top priority ?

Shareholders

20

What happens to unemployment during a recession ?

Its increases

21

What happens to a business in a recession ?

Stop buying products, business could go out of business

22

Define Tariff

Tax on foreign goods

23

What are the three trade barriers we discussed in class ?

Import quotas: only so much product can come in
Voluntary export restrictions: only so much product can go out
Tariffs: a tax on foreign goods

24

What Economic System is the Parable of the Vineyard ?

Communism

25

What is a Trade Imbalance ?

When a nation puts out so much product, but brings a smaller amounts of imports (vice versa)

26

Why did Fracking become affordable ?

Fracking became affordable because gas price rose

27

In a free market economy you have periods of ________ and ____________

Surplus
Deficit

28

Name three reasons for Import Quotas

Protect U.S. manufacturing
Protect consumers
Protect prices

29

When unemployment is below 4%-5% it is effectively considered what ?

Full employment

30

Name three things that may cause inflation

Devaluing currency
A shortage
Raising minimum wage