Econ Review

What is the business cycle?

In a period of expansion, production and employment tend to decrease.

It is because of the idea of scarcity that choices become necessary.

Which of these is NOT considered an economic indicator?

In the theory of supply and demand, if demand increases, then supply will follow and increase as well.

The ability of a country to produce a good at a lower cost than another country is called what?

Why do people engage in voluntary trade?

Number of available substitutes, consumer preferences, and shifts in price of complementary products are all factors of:

What is a benefit of international trade?

If demand and supply are not equal, we call it equilibrium.

Access to clean water around the world would be considered scarce.

Which of these is reflected in a country's GDP?

Which of these factors can affect trade between countries?

This is used to measure a specific number of goods' prices over a year period to measure inflation.

A low inflation rate and low unemployment can be an indication of a slow or poor economy.