consumer economics

Question 1

what is economics?

Answer 1

study of how people make choices regarding production, distribution, and consumption of goods and services

Question 2

good

Answer 2

product of things (car, phones, clothes, food)

Question 3

service

Answer 3

work in exchange for $

Question 4

resource

Answer 4

anything used to produce good/service (human resources and natural resources)

Question 5

scarcity

Answer 5

insufficient for demand-> state of being scare

Question 6

Causes of scarcity

Answer 6

= not enough of what people want
supply and demand, natural resources, disasters, weather, money supply, business strategy.

Question 7

3 questions to resolve scarcity

Answer 7

What Will be produced
How will it be produced
Who gets it

Question 8

Traditional

Answer 8

customs, beliefsC

Question 9

Command

Answer 9

central govt. controls

Question 10

Market

Answer 10

based on supply and demand- lassiez faire

Question 11

mixed

Answer 11

(USA) combo of market and demand-

Question 12

Demand

Answer 12

amount of a good/service consumers are willing to buy

Question 13

supply

Answer 13

how much of a good/service si able and willing

Question 14

low demand prices go…

Answer 14

down

Question 15

high demand prices go…

Answer 15

up

Question 16

Unemplyment Rate

Answer 16

% of labor force actively looking for jobs

Question 17

inflaction

Answer 17

overall increase in $ of goods/services

Question 18

CPI

Answer 18

measures changes of $ for goods/services

Question 19

GDP

Answer 19

(before deductions) total of all goods produced in specific time period

Question 20

Whose responsible for fiscal policy

Answer 20

pres and Congress

Question 21

Whose responsible for monetary policy

Answer 21

the fed

Question 22

3 ways the fed carries out monetary policy

Answer 22

treasury bills (bonds), increase/decreases money supply, changing interest rate

Question 23

3 ways the pres & Congress carry out fiscal policy

Answer 23

stimulus checks, taxes, govt. spending

Question 24

Easy monetary or fiscal policy costs govt….

Answer 24

more, consumers less

Question 25

Tight Monetary Fiscal policy costs govt…

Answer 25

less, consumers more

Question 26

Law of demand

Answer 26

when people want a product (high demand) but there is a low supply: cost goes up

Question 27

Law of supply

Answer 27

When (low demand) and excess supply: prices go down

Question 28

what is fiscal policy

Answer 28

use of govt. spending and policies to influence economy

Question 29

what is monetary policy