Review Unit 1-2

Front

Why do all societies face a trade-off for every decision?

Back

Resources are scarce

Front

The concept of opportunity cost would no longer be relevant if

Back

the supply of all resources was unlimited

Front

What measure shows how well the economy is doing over time?

Back

Gross Domestic Product

Front

What is NOT included in a country's GDP? Options: Consumer Spending, Business Spending, Government Spending, Net Exports, Net Imports

Back

Net Imports

Front

What measure shows what percentage of the eligible workers do not have jobs?

Back

Unemployment Rate

Front

When people can't find a job because of a lack of demand for their skills or type of labor, this is called?

Back

Structural Unemployment

Front

When people can't find a job because the economy is not doing well due to a recession, this is called?

Back

Cyclical Unemployment

Front

What measure shows the rate at which the money supply is increasing relative to the number of people using it?

Back

Inflation Rate

Front

A decrease in the general price level of goods in services that can be negative in the long run by driving down the GDP and raising unemployment.

Back

Deflation

Front

An increase in costs will

Back

Shift aggregate supply