Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
24 Cards in this Set
- Front
- Back
|
circular flow diagram
|
a diagram that views the economy as consisting of households and firms interacting in agoods and services market and a labor market
|
|
|
command economy
|
an economy where economic decisions are passed down from government authority andwhere resources are owned by the government
|
|
|
division of labor
|
the way in which the work required to produce a good or service is divided into tasks performedby different workers
|
|
|
economics
|
the study of how humans make choices under conditions of scarcity
|
|
|
economies of scale
|
when the average cost of producing each individual unit declines as total output increases
|
|
|
exports
|
products (goods and services) made domestically and sold abroad
|
|
|
fiscal policy
|
economic policies that involve government spending and taxes
|
|
|
globalization
|
the trend in which buying and selling in markets have increasingly crossed national borders
|
|
|
goods and services market
|
a market in which firms are sellers of what they produce and households are buyers
|
|
|
gross domestic product (GDP)
|
measure of the size of total production in an economy
|
|
|
imports
|
products (goods and services) made abroad and then sold domestically
|
|
|
labor market
|
the market in which households sell their labor as workers to business firms or other employers
|
|
|
macroeconomics
|
the branch of economics that focuses on broad issues such as growth, unemployment, inflation,and trade balance.
|
|
|
market
|
interaction between potential buyers and sellers; a combination of demand and supply
|
|
|
market economy
|
an economy where economic decisions are decentralized, resources are owned by privateindividuals, and businesses supply goods and services based on demand
|
|
|
microeconomics
|
the branch of economics that focuses on actions of particular agents within the economy, likehouseholds, workers, and business firms
|
|
|
model
|
a representation of an object or situation that is simplified while including enough of the key features to help us understand the object or situation
|
|
|
monetary policy
|
policy that involves altering the level of interest rates, the availability of credit in the economy,and the extent of borrowing
|
|
|
private enterprise
|
system where the means of production (resources and businesses) are owned and operated byprivate individuals or groups of private individuals
|
|
|
scarcity
|
when human wants for goods and services exceed the available supply
|
|
|
specialization
|
when workers or firms focus on particular tasks for which they are well-suited within the overallproduction process
|
|
|
theory
|
a representation of an object or situation that is simplified while including enough of the key features tohelp us understand the object or situation
|
|
|
traditional economy
|
typically an agricultural economy where things are done the same as they have always beendone
|
|
|
underground economy
|
a market where the buyers and sellers make transactions in violation of one or moregovernment regulations
|
