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What is the MPS?

MPS is the marginal propensity to save when disposable income has been increased by a $1

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What Shifts PPC?

Resources, technology and trade

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What Is not included in GDP?

Intermediate, nonproduct transactions and illegal activities

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What Are the four Factors of Production?

Land, Labor, Entrepreneurship and capital are the four factors of production

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What Is absolute advantage?

When a country has the advantage of producing the same goods and services than another country

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Who owns the resources to produce and sell to the market?

The federal government

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What is nominal GDP?

GDP not adjusted for inflation

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What Is scarcity?

When there are unlimited wants but limited resources to satisfy the demand of society

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What Are the shifters of demand?

Preferences, price of related goods, income and future expectations

- $500What Makes up GDP

Consumer spending, investments, government spending, and net exports

- $100What Is MPC?

MPC is marginal propensity to consume. When consumption increases after disposable income has been increased by a $1

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What Are the shifters of PPC?

It recognizes public records, acts and judicial proceedings

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What Is seasonal unemployment?

People unemployed due to seasonal job market changes

- $400What Is Consumer Price Index?

CPI is the index of the average goods and services purchased by the typical consumer

- $500What Is frictional unemployment?

People who are unemployed due to the time they used to find a job

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What Is nominal interest rate?

Interest rate actually paid for a loan

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What Measures the cost of purchasing a given market basket

in a given year?

The price index

- $300What Is the circular flow model?

Model which illustrates the flow of goods and services through the economy

- $400What are substitute goods?http:w.sausd.us/Page/25788

Goods that are in demand due to the increase of price of a preferred good

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What Are complimentary goods.

The rise of the price of one good leads to a decrease in the price of another good

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What Is Comparative Advantage?

A country being able to produce goods at a lower opportunity cost than another country.

- $200What Is normative economics?

Normative economics are opinions on how the economy should work

- $300What Is the law of supply?

The higher the price of a good leads to a higher supply of that same good

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What Is the percentage rate of senators that get reelected?

80 percent of senators get reelected

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What Is the law of demand?

The higher the price of one good, the higher the demand of a related good

- $100How Do we measure the

Standard of living?

We measure the standard of living through Real GDP

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What Is the difference between Real GDP and Nominal GDP?

Real GDP is based on average prices and nominal GDP is based on current good prices

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What is the effect of inflation?

It will decrease the amount of goods and services being purchased

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force?

People above 16 years old not involved in any full time institutions like school and are willing to work are part of the work force

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inflation?

Cost push

Demand pull

Excess of printed money