Consumer Economics

Question 1

National debt

Answer 1

The amount of money the government owes other countries after borrowing from them

Question 2

Unemployment

Answer 2

Someone looking for work but has no job

Question 3

Inflation

Answer 3

Period of rising prices (related to personal money management).

Question 4

GDP

Answer 4

Gross National Product
Value of goods and services produced in a country during the year
(only finished goods are counted)

Question 5

Economics

Answer 5

The study of how a society uses its resources to produce and distribute goods and services, while satisfying wants and needs

Question 6

Inflation: As prices go up, the value of money goes…?

Answer 6

Down

Question 7

Inflation: If income does not rise at the same rate as prices, buying power is…?

Answer 7

Reduced

Question 8

Traditional economy

Answer 8

Learned from traditions and beliefs of family or people

Usually poor, education lacking

Question 9

Command economy

Answer 9

Decisions made by gov., and they control both recourses and production

Question 10

Maker economy

Answer 10

Businesses made production decisions, citizens buying drives economy

Question 11

Mixed economy

Answer 11

Some gov. Control, businesses privately/publicly owned

Businesses satisfy wants, gov satisfies needs

Question 12

The US is what kind of economy?

Answer 12

Mixed

Question 13

The federal reserve system controls the supply money in three different ways

Answer 13

Change in reserve requirements (how much can be held in banks?)
Change in discount rate
Open market operations

Question 14

Who sets the nations fiscal policy?

Answer 14

The president and congress

Question 15

Who sets the nations monetary policy?

Answer 15

The federal reserve

Question 16

Fiscal policy

Answer 16

Fed gov’s taxing and spending decisions

Used during periods of recession and and high unemployment to stimulate the economy

Question 17

Monetary policy

Answer 17

Actions the federal reserve board takes to manage the supply of money and credit in the economy???

Question 18

CPI (consumer price index)

Answer 18

Charts the ups and downs in the prices of consumer goods and services, and therefore measure the average change in prices over time for selected time for selected goods and services

Question 19

Scarcity

Answer 19

The challenge of stretching resources to cover needs and wants

Question 20

Law of demand

Answer 20

The lower the price the higher the demand

Question 21

Law of supply

Answer 21

The more supply, the higher the demand

Question 22

Equilibrium point

Answer 22

When both the supply and demand are equal

Question 23

Supply vs demand

Answer 23

Supply: Amount of a product or service producers are willing to provide

Demand: Quantity of a product or service consumers are willing to buy

Question 24

When looking at a supply and demand graph, where are the surplus and shortage?

Answer 24

Above and below the X

Question 25

When looking at a supply and demand graph, where are the supply and demand lines

Answer 25

Supply: right
Demand: left

Question 26

Structural unemployment

Answer 26

Caused by mismatch of skills and available jobs

Example: job lost because of technical advances

Question 27

Cyclical unemployment

Answer 27

Occurs when economy slows or is in recession

Question 28

Seasonal unemployment

Answer 28

Jobs depend on seasonal activities

Question 29

Underemployment

Answer 29

Employees are only employed part time or are overqualified

Question 30

Frictional unemployment

Answer 30

Short term, effects people who are between jobs (people who have moved or changed jobs/careers)