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Economy: Foundations of Trade and Wealth

The fundamental principles of economics, including microeconomic behavior, macroeconomic systems, and the history of economic thought. It covers market structures, financial indicators, and the theories of influential economists.

Preview (10 cards)

Who is considered the father of modern economics?

Adam Smith

What is the name of the book written by Adam Smith in 1776?

The Wealth of Nations

What term describes the cost of the next best alternative?

Opportunity cost

What law states that as price rises the quantity demanded falls?

The law of demand

What occurs when the quantity supplied exceeds the quantity demanded?

A surplus

What is the point where supply and demand curves intersect?

Equilibrium

What does GDP stand for?

Gross Domestic Product

What is the term for a general increase in prices?

Inflation

Who wrote The General Theory of Employment Interest and Money?

John Maynard Keynes

What type of economy is based on customs and beliefs?

A traditional economy

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