1. An increase in real GDP, an expansion in production possibilities is called ______________________________
2. The entire study of aggregate economic behavior as a whole is _______________________________________
3. The sum of _________________________, investment, government expenditure, and net exports is one definition for Gross Domestic Product.
4. When the assumption is that other things remain equal, the term used is ________________________________________________________________________________________
5. _______________________________ is the use of market prices and sales to signal desired outputs
6. A high level of ____________________in the US is the result of an abundance of capital, the use of advanced technology, and highly educated workers.
7. A high ratio of capital to labor in the production process makes an industry ____________________________
8. A curve depicting the quantities of a good/service a consumer is willing and able to buy at alternative prices in a given time, ceteris paribus is __________________________________________________________________
9. Goods/services whose consumption does not exclude consumption by others is _________________________
10. ______________________________________________ is used to compare the average living standards in one country versus another @ text.
11. The sum of consumption and saving is ___________________________________________________________
12. The law that states 1% more in unemployment results in 2% less output is _______________________________
13. When unemployment is caused by a mismatch between skills (or location) of available jobs and the requirements of jobs available, this is called _______________________________________________________
14. The lowest rate of unemployment compatible with price stability is ____________________________________
15. Automatic adjustments of nominal income to the rate of inflation is called _______________________________
16. The theory that supply creates its own demand is called ______________________________________________
17. Externalities are when costs or benefits of a market activity affects _____________________________________
18. When government intervention fails to improve economic outcomes, it is called ___________________________________________________________________________________________
19. When there is only one producer in an industry ___________________________________________________
20. The legislation used to prevent or break up concentrations of market power is called _____________________
21. The price at which the quantity demanded equals quantity supplied of a good ___________________________________________________________________________________________
22. Refers to the inverse relationship between price and quantity _________________________________________
23. Goods frequently used in combination ____________________________________________________________
24. When aggregate quantity supply exceeds aggregate quantity demand __________________________________
25. The four components of aggregate demand are (must get all 4) _______________________________________ _____________________ _________________________________ ____________________________________
26. When consumer spending is not dependent on current income ________________________________________
27. A tax system in which tax rates fall as income increases ______________________________________________
28. The principle of government nonintervention is called _______________________________________________
29. When a company has the ability to alter market price of good/service, it is said to have ___________________________________________________________________________________________
30. Goods/services sold to other countries ____________________________________________________________
31. The most desired goods/services given up in order to obtain something else ___________________________________________________________________________________________
32. The knowledge and skills possessed by the labor force _______________________________________________
33. The value of final output produced in a given time period adjusted for changing prices _____________________
34. GDP minus depreciation equals _________________________________________________________________
35. When the economy is growing, both unemployment rates and the average duration of unemployment _____________________________________
36. A measure of changes in the average price of consumer goods and services __________________________
37. ________________________________ is officially defined as a rate of inflation less than 3%
38. One who does not pay but still enjoys the benefits ______________________________________________
39. A form of government intervention to address the for whom questions ____________________________
40. _________________________________ asserted that a market-driven economy is inherently unstable.
41. Lack of enough resources to satisfy all desired uses of those resources is called _________________________
42. An economy that uses both market signals and government directives to allocate goods/resources is called a _____________________________________________________________________
43. One-fifth of population ranked by income is ___________________________________________________
44. A decrease in the average level of prices of goods and services ____________________________________
45. The part of disposable income not spent on current consumption __________________________________
46. When the amount of aggregate supply at full employment falls short of full-employment output ________________________________________________________________
47. The two chief concern about macro equilibrium that could lead to market failure are ________________________________________________________________
48. And ____________________________________________________________
49. An imperfection in the market mechanism that prevents optimal outcomes _______________________________________________________________________________________
50. Maximum output of goods from resources used in production _____________________________________
BONUS QUESTIONS
1. What percentage of US population itemizes on taxes _____________________________________________
2. What are tax expenditures __________________________________________________________________
3. Explain the term "pump priming" in terms of government action _________________________________________________________________________________________
4. The growth of government can be attributed to __________________________________________________
5. The purpose of Simpson Bowles Commission was ___________________________________________________________________________________________