checkup #3 Flashcards
the study of individual units of an economy?
microeconomics
the study of the economy as a whole?
macroeconomics
a stable economy?
equilibrium
the value of income in terms of purchasing power?
real wage
the value of income in monetary terms?
money wage
the market value of all final goods and services produced within a nation during one year?
gross domestic product
wearing down of buildings, tools, and machines?
capital depreciation
continuous increase in average prices of goods and services?
inflation
market value of all final goods and services produced by the citizens and businesses of a nation during one year
gross domestic product
income to those who loan money
interest
measure of the change in average prices of common goods and service?
consumer price index
payment for the risk factor inherent in any loan?
pure profit
payment without regard to variations in interest rates.
pure interest
payment for an expected decrease in the purchasing power of money
inflation premium
payment to induce a lender to part with present purchasing
originary interest
What are an indirect method of attaining macroeconomic goals that politicians consider desirable?
government fiscal policies that affect a nation’s economy
what levels do macroeconomics focus on?
the employment level, the production level, and the economic growth and/or stability of a national economy
what was the Great Depression caused partly by?
high import tariffs and by the overpricing of labor
what was the solution of governments to the Depression?
to inflate currency
what happens when a currency is inflated?
real wage drops while the money wage remains the same.
What is the CPI a measurement of?
inflation
what is the cost of the market basket a gauge of?
the cost of living
MAKE SURE TO STUDY ALL THE MULTIPLE CHOICE ON PAGE “X”
okay!
What does Jean Baptiste Say’s law state?
that the economy tends toward equilibrium.
