Key Economic Terms and Concepts in Action

This video tutorial introduces 15 fundamental economic terms, including supply and demand, inflation, GDP, fiscal and monetary policies, and more. It explains each term's significance in understanding the financial world and provides examples to illustrate their impact on the economy. The video also covers different types of economies, opportunity cost, and entrepreneurship, offering a comprehensive overview of essential economic concepts.

What happens to prices when the demand for a product is higher than its supply?

• Prices fluctuate randomly

• Prices decrease

• Prices remain the same

• Prices increase

Which term describes a general increase in prices and a fall in the purchasing value of money?

• Stagnation

• Recession

• Deflation

• Inflation

What does GDP stand for?

• Gross Domestic Product

• General Domestic Production

• Gross Development Product

• Global Domestic Product

What is the main goal of fiscal policy?

• To influence economic growth through taxation and spending

• To control the money supply

• To manage inflation

• To regulate international trade

Which policy involves the management of interest rates and money supply by a central bank?

• Monetary policy

• Economic policy

• Fiscal policy

• Trade policy

What is a recession characterized by?

• Stable business investments

• Increased consumer spending

• High unemployment rates

• Rapid economic growth

What occurs when a government spends more than it collects in taxes?

• Economic boom

• Fiscal surplus

• Budget deficit

• Trade surplus

In a market economy, who primarily makes the economic decisions?

• Central banks

• International organizations

• The government

• Private individuals and businesses

What does the Consumer Price Index (CPI) measure?

• Changes in the cost of a basket of goods and services over time

• The level of government spending

• The total value of goods and services produced in a country

• The average income of a country's citizens

What is entrepreneurship primarily about?

• Balancing trade deficits

• Managing government policies

• Identifying business opportunities and taking risks

• Controlling inflation