Based (history and basic things) Flashcards
What is the definition of economy?
The system of production, distribution, and consumption of goods and services in a society.
True or False: The primary purpose of an economy is to create wealth.
True
Fill in the blank: An economy can be classified as __________, __________, or __________.
traditional, command, market
What does GDP stand for?
Gross Domestic Product
Multiple Choice: Which of the following is NOT a factor of production? A) Land B) Labor C) Money D) Capital
C) Money
What is the primary function of money in an economy?
To serve as a medium of exchange.
True or False: Inflation is the general increase in prices and fall in the purchasing value of money.
True
What is a market economy?
An economic system where supply and demand determine the production and pricing of goods and services.
Fill in the blank: In a command economy, the government __________ economic decisions.
makes
What does the term ‘opportunity cost’ refer to?
The loss of potential gain from other alternatives when one alternative is chosen.
Multiple Choice: Which economic theory advocates for minimal government intervention? A) Keynesianism B) Monetarism C) Classical Economics D) Socialism
C) Classical Economics
What is the significance of the Industrial Revolution in economic history?
It marked a major turning point in history, leading to the rise of industrial economies and urbanization.
True or False: A recession is defined as two consecutive quarters of negative GDP growth.
True
What is fiscal policy?
The use of government spending and taxation to influence the economy.
Fill in the blank: The __________ is the total market value of all final goods and services produced in a country in a given period.
GDP
What is the role of the Federal Reserve in the U.S. economy?
To regulate the monetary system and implement monetary policy.
Multiple Choice: Which of the following is a characteristic of a mixed economy? A) Complete government control B) No government intervention C) Combination of private and public ownership D) Strictly traditional practices
C) Combination of private and public ownership
What is a monopoly?
A market structure where a single seller controls the entire supply of a product or service.
True or False: Supply refers to the amount of a good that producers are willing to sell at various prices.
True
What does the term ‘balance of trade’ refer to?
The difference between a country’s exports and imports.
Fill in the blank: __________ economics focuses on the behavior of individuals and firms in making decisions regarding the allocation of resources.
Micro
What is the purpose of tariffs in international trade?
To protect domestic industries by raising the price of imported goods.
Multiple Choice: Which of the following is considered a leading economic indicator? A) Unemployment rate B) Stock market performance C) Inflation rate D) GDP growth
B) Stock market performance
What is globalization?
The process of increased interconnectedness and interdependence among countries, especially in trade and investment.
True or False: The Great Depression was a global economic downturn that started in the 1930s.
True
