Chapter 3 Flashcards
Micro and macroeconomic
Micro- economic behavior amount individuals, families, and businesses
Macro- nations overall economic issues and how the maintain and allocate resources
Supply and Demand curve
Demand curve is graph of the amount of a product buyers will purchase at a different price
Supply Curve relationship between different prices and quantities that sellers will offer for sale
How do factors of production influence the overall supply of goods and services?
It can shift the supply curve by increase or decrease
Pure competition
Monopolistic competition
Pure: Market structure in which people sell and buy homogeneous products no significant impact on price
Monopolistic: heterogeneous types of products are bought and sold and each participant has control over price
What economic system is US economy based?
Private enterprise system
Privatization
Government owned and operated into privately held businesses
Four stages of business cycle
Prosperity, recession, depression, and recovery
What are some measures economist use to determine health of economy
GDP, general level of prices, core inflation rate, CPI, and unemployment
Expansionary monetary
Restrict monetary
Expansionary: increase money supply to cut coast of borrowing
Restrictive: reduce money supply to curb rising prices
Does balanced budget erase nation debt?
No but it doesn’t increase it
Why is virtually no country an economic island?
Many good and services travel across national borders
How can the US expand globally
Attracting more consumers
Less expensive labor
