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 ___________________________________________________________________________________________