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Economics Test Review
Terms in this set (25)
How do you discern which socioeconomic goals?
Freedom, equity goals
How do you interpret a graph showing the gross domestic product over a period of years?
The cost increases when the year increases
What sometimes happens when evaluating the effectiveness of fiscal and monetary policy to receive economic growth?
The stock market benefits along with corporate
industries and households rich enough to invest in stocks but such policies (fiscal and monetary are not always totally successful for everyone)
How do you balance social-economic goals of economic growth?
An oil company proposing a new pipeline near a water supply location and residence fearful of possible oil spills, one solution is to remove the threat and relocate the pipeline to avoid communication
What does the environmental protection agency address conflict between?
Economic Developers (IE Paper Companies) and environments (who want to preserve natural habitats for wildlife)
What happens if there is an increase in unemployment?
Congress may try to make more money available by increasing government spending
What will happen if the GDP decreases?
The Federal Reserve will want to make more money available. (thus they would lower the discount rate of reserve requirement)
What did the president propose during the state of the union message?
What does fiscal policy involve?
Taxing, spending and deficit levels of the national government
What is Gross Domestic Product (GDP)?
A measure of all the goods and services produced by a nation in a given year
Why is social security a hotly debated topic?
People disagree over weather it does promote economic security or endanger economic security
What is a traditional economy?
Habit and custom determine the rules for all economic activity
Wants are________while resources are____________
What does the business cycle show?
The rise and fall of the economy over time
What is a command economy?
An economy in which production, investment, prices, and incomes are determined centrally by a government.
What is an opportunity cost?
The value of the next best alternative
What is a market economy?
A system were decisions are made by interactions between buyers and sellers. It is not controlled by the government and is used by most countries today.
What is a mixed economy?
Economic choices that are controlled by the government
What is an important role of our government in our economy?
Reducing unemployment and inflation
Who keeps the profit in a command economy?
Who keeps the profit in a market economy?
The individual who owns it
What was the message during the state of the union?
The president proposes a budget
What is the goal of every federal regulatory agency such as the federal aviation, the environmental protection agency, and the food and drug admin?
To promote or maintain citizen safety
What are examples of how to recognize social economic goals?
Education, Equity, Fairness, Security, and Stability
What does the consumer price refer to?
The change in price of a specific group of goods and services
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