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Free Economics Terms Flashcards

Econ vocabulary is the price of admission to understanding the news — inflation, GDP, elasticity. A compact deck of definitions makes every article and exam clearer.

Study these 10 starter cards

QUESTION
Tap the card to reveal the answer
QWhat is opportunity cost?
AThe value of the best alternative you give up when choosing
QWhat is inflation?
AA general rise in prices, reducing money’s purchasing power
QWhat is GDP?
AGross Domestic Product — the value of all goods and services produced in a country in a period
QWhat does the law of demand state?
AAs price rises, quantity demanded falls (other things equal)
QWhat is a monopoly?
AA market with a single seller and no close substitutes
QWhat is price elasticity of demand?
AHow much quantity demanded responds to a price change
QWhat is fiscal policy?
AGovernment use of spending and taxation to influence the economy
QWhat is monetary policy?
ACentral bank control of money supply and interest rates
QWhat is a recession (common definition)?
ATwo consecutive quarters of falling GDP
QWhat is comparative advantage?
AProducing at a lower opportunity cost than others — the basis for trade

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