unit 5 +6

Question 1

investment is increased, the aggregate demand increases more than the investment, therefore produces a multiplied effect

Accepted Answer

Multiplier theory of investment

Question 2

What is the definition of deflation?

Accepted Answer

The continual and widespread decline in the prices of goods and services.

Question 3

combination of means and instruments through which governments try to regulate or modify the economic works of a nation.

Accepted Answer

Economic Policy

Question 4

The capacity that an asset has to generate interest or profits

Accepted Answer

Profitability

Question 5

these are allowed to perform transactions by the Central Bank

Accepted Answer

Lending Facilities

Question 6

the amount of money that is in circulation is the...

Accepted Answer

Monetary supply

Question 7

Capital markets...

Accepted Answer

negotiate long term financial assets

Question 8

The value of all final goods and services produced within and outside of a country's borders in a period of time

Accepted Answer

Gross National Product

Question 9

Pure Public goods

Accepted Answer

No rivalry in consumption

Question 10

Asymmetric markets or imperfect information

Accepted Answer

When not all economic agents have the same info. Some have an advantage.

Question 11

The continual growth of the prices of goods and services existent in an economy measurable through a price index.

Accepted Answer

Inflation

Question 12

Negative externality

Accepted Answer

No assumption for the costs of negative effects that their good produces.

Question 13

Total amount of goods and services that businesses of a country have available to produce and sell at different prices.

Accepted Answer

Aggregate Supply

Question 14

Shows the relationship between population groups and the amount of the national income that they have.

Accepted Answer

Lorenz Curve

Question 15

Arthur Pigou's Psychological theory

Accepted Answer

Positive expectation favors investment, consumption and expenditure, Cycles caused by expectations that individuals have.

Question 16

Operations executed by the Central Bank: buy or sell assets, grant loans, collect debt certificates and collect deposits

Accepted Answer

Operations of an open market

Question 17

Measures the development of a country through: GDP per capita; life expectancy and literacy rate.

Accepted Answer

Human Development Index

Question 18

Economic cycles reflect changes in the amount of money available

Accepted Answer

Monetary theory of Milton Friedman.

Question 19

the combination of markets whose purpose is to channel surplus savings (lenders) who have a deficit of money (borrowers)

Accepted Answer

Financial system

Question 20

Economic cycle

Accepted Answer

Follows the process of a recession, expansion that occur in almost the same time in various economic activities

Question 21

What is the definition of Liquidity

Accepted Answer

The capacity that an asset has to be converted into liquid money

Question 22

The total demand of goods and services at different prices for a determined period of time

Accepted Answer

Aggregate demand

Question 23

Political Cycle Theory of Michael Kalecki

Accepted Answer

Expansion begins before election., economic cycle parallels the political cycle.

Question 24

What is the difference between GDP and GNP?

Accepted Answer

GDP is within a country's borders. GNP is regardless of location

Question 25

This is the means of payment generally accepted in exchange for goods and services.

Accepted Answer

Money

Question 26

Final goods and services produced outside the law and are not registered. Therefore they are not included in the GDP

Accepted Answer

Informal Economy

Question 27

Common property goods

Accepted Answer

a Mountain, Noone owns goods whose services used in production

Question 28

The price that you must pay when you receive a loan and the earnings of the person or company that gave you the loan.

Accepted Answer

Interest Rate

Question 29

Produced by a poorly functioning market, when there is not efficient allocation of resources

Accepted Answer

Market Failures

Question 30

The possibility that the investor will not be able recover their invested money.

Accepted Answer

Risk

Question 31

The value of all final goods and services produced from production factors within a country in a period of time

Accepted Answer

Gross Domestic Product

Question 32

Externalities

Accepted Answer

Situation where costs or benefits of a good are not reflected in its price.

Question 33

Financial Markets...

Accepted Answer

connect savings with possible investors

Question 34

positive externality

Accepted Answer

Business does not receive payment for something positive they have done.

Question 35

Welfare State

Accepted Answer

based on equality of opportunity, taking care of others, Government plays a key role in taking care of its citizens' wellbeing

unit 5 +6

Questions 35

unit 5 +6

Questions 35