The Tremendous Twenty Economic Concepts

The Tremendous Twenty Economic Concepts Students Should Know

The Fabulous Fifteen plus:

Monetary Policy : Monetary policy is the attempt of the Federal Reserve (Central) Bank to achieve certain economic goals, especially price stability, through the control of the rate of growth in the money supply.

Inflation: Inflation is an increase in the overall price level of goods and services, with a corresponding decrease in the purchasing power of money. The primary cause of inflation is an increase in the supply of money relative to the availability of goods and services.

Fiscal Policy: Fiscal policy refers to the sending and taxing practices that the Federal government uses to achieve certain economic goals, especially economic growth and full employment.

Comparative Advantage: Comparative advantage is the ability of a country to produce a specific good or service at a lower opportunity cost than its trading partners. Comparative advantage is the basis for specialization and trade between countries.

Exchange Rates: An exchange rate is the price of one nation's currency in terms of another nation's currency.

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