Econ Unit 1 PT Flashcards
the charge a lender places on borrowed money
interest
trading one item to receive another item
barter system
problem that occurs due to limited resources and unlimited wants
scarcity
wrote Wealth of Nations on the advantages of a market economy (capitalism)
Adam Smith
decision made based on maximum benefit and value
rational choice
All economic decisions are made by the government with little or no input by the people.
command economy
consumer’s record of dept payment and fulfillment of financial obligations
credit
The market (consumer) decides what is made, sold, and brought.
market economy
The Articles of __________ was the first constitution of the United States that gave more power to the states and left the federal government weak.
confederation
__________ is a period when the economy and GDP begin to improve and grow. It is characterized by lower unemployment, an increase in consumption and investment, and banks willing to loan money.
Expansion
Fluctuations between economic contractions and expansions are know as the __________.
business cycle
A slowdown in economy characterized by rising unemployment, a lack of consumption and investment, and banks being slow to lend money is called __________.
recession
The National Bureau of Economic Research is an independent, __________ organization not found within the government that observes and tracks the actions of the business cycle.
private
Which movement influenced the concepts of the market economic system?
the Enlightenment
In the area of economics, the government divides its earning marks into QUARTERS, or every __________ months.
three
During the 1873 depression, the people in dept were in favor of __________.
the reissue of greenback dollars from the Civil War
Which war and the subsequent agricultural surplus helped cause the 1857 depression?
the Crimean War
Why might the states be upset at the federal government paying off their debts?
The states did not want to be answerable to the federal government and therefore be put in a weaker position.
The concept of a double coincidence of wants is the instrumental part of __________.
the barter system
