2. Begin

3. $100 $200 $300 $400 $500

4. C1-$100 - $100 What are the factors of production? land, labor, capital, & entrepreneurship

5. C1-$200 - $200 3 types of unemployment 1.Frictional unemployment 2.structural unemployment 3.cyclical unemployment

6. C1-$300 - $300 What does the government own? They own all the resources and decide what to produce, how much to produce, & who will receive it

7. C1-$400 - $400 Which economic theory argues that economic growth can be most effectively created by lowering barriers for people to produce goods & services and by allowing greater flexibility by reducing regulation? Supply-side economics

8. C1-$500 - $500 Why was macroeconomics created? 1.Measure health of economy 2.Guide govt. policies to fix problems 3.Major economic growth

9. C2-$100 - $100 What is aggregate demand? The total demand for final goods & services in the economy @ a given time & price level

10. C2-$200 - $200 What works together in order to regulate the economy? Competition & self-interest

11. C2-$300 - $300 The ability of a party to produce a particular good or service @ a lower marginal & opportunity cost over another Comparative advantage

12. C2-$400 - $400 Normative vs. positive economics Normative: makes prescriptions about the way the economy should work, value judgments Positive: branch of economic analysis that describes the way the economy actually works, fact based statements

13. C2-$500 - $500 Calculating unemployment rate # of unemployed people___________ # of people in labor force

14. C3-$100 - $100 What shows how factors of production go from households to firms in order to create goods for people to buy? Circular flow map

15. C3-$200 - $200 What are the shifters of supply? 1.prices/availability of inputs (resources) 2.# of sellers 3.Technology 4.Govt. action: taxes & subsidies 5.Opportunity cost of alternative production 6.Expectations of future profit

16. C3-$300 - $300 An economy in which no activity is conducted with outside economies Closed economy

17. C3-$400 - $400 Calculate change in real GDP year 2 – year 1_ X 100 % change in GDP= year 1

18. C3-$500 - $500 Calculating Consumer Price Index price of market basket in a the particular CPI= ____________year______________________ x100 price of the same market basket in the same year

19. C4-$100 - $100 The total supply of goods & services that firms in a national plan on selling during a specific time period Aggregate supply

20. C3-200 - $200 Calculate MPS change in saving__________ MPS= change in income

21. C3-$300 - $300 PPC/PPF Illustrates trade-offs facing an economy that produces only two goods; it shows the maximum quantity of one good that can be produced for each possible quantity of the other good produces

22. C3-$400 - $400 What are the shifters of demand? 1.Tastes & preferences 2.# of consumers 3.Price of related goods 4.Income 5.Future expectations

23. C3-$500 - $500 Gross domestic product figure that has not been adjusted for inflation Nominal GDP

24. C4-$100 - $100 Resources that aren’t unlimited & aren’t available in sufficient quantities to satisfy all the various ways a society wants to use them scarcity

25. C4-$200 - $200 What is absolute advantage? The ability of a party to produce more of a good or service than competitors, using the same amount of resources

26. C4-$300 - $300 Open economy An economy in which a country will conduct trade with outside regions

27. C4-$400 - $400 Causes of inflation 1.The govt. prints too much money 2.Demand-pull inflation 3.Cost-push inflation

28. C4-$500 - $500 What is not included in GDP? 1.Intermediate goods 2.Nonproduction transactions 3.Nonmarket (illegal) activities

29. C4-$100 - $100 A condition of slow economic growth & relatively high unemployment accompanied by a rise in prices stagflation

30. C4-$200 - $200 Calculate MPC change in consumption_________ MPC= change in income

31. C4-$300 - $300 4 components of GDP 1.Consumer spending 2.Investments 3.Govt. spending 4.Net exports GDP: C+I+G+Xn

32. C4-$400 - $400 What is gross investment? The amount a company invests in business assets that does not account for any depreciation

33. C4-$500 - $500 What is real GDP per capita? Real GDP per capita is real GDP divided by the total population