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25 Cards in this Set
- Front
- Back
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fiscal policy
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changes in the taxing and spending of government to expand the level of aggregate demand
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monetary policy
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changes in interest rates and money supply to expand the level of aggregate demand
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interest rates
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price a borrower pays for the use of money they borrow from a lender
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stagflation
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persistent high inflation combined with high unemployment and stagnant demand in a country’s economy
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Federal Reserve Board
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the 7-member board of governors that oversees federal reserve banks, establishes monetary policy, and monitors the economic health of the country
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depression
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a long and severe recession in an economy or market
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recession
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a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters
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Why do people economize?
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They make decisions that involve the least cost and greatest benefit
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All choices include _____. ______ cost is the second choice.
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cost, opportunity
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People respond to _____. These are _____.
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incentives, actions or rewards that encourage people to act
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Economics systems influence _____.
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individual choices and incentives
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Voluntary trade creates ____. People can produce more in less time by _____.
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wealth, specializing in what they do best
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The consequences of a choice lie in ____.
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the future
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economics
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the study of how individuals and governments allocate scarce resources in an attempt to satisfy unlimited wants
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economics
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the study of people producing and exchanging to get the goods and services they want
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people's wants are
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unlimited
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the resources to satisfy these wants are
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limited or scarce
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people are willing to ____ in an effort to satisfy their _____
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trade, wants
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resources
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basic elements used to create goods and services
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natural resources (land)
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things that come from nature
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human resources (labor)
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physical and mental efforts used to create goods and services
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capital resources
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buildings, tools, and machines used to produce goods and services
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entrepreneurship
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intelligence, imagination, and ability to take risks that are needed to start up and maintain a business
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macroeconomics
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study of the entire economy of a nation or even the global economy. Macroeconomics is concerned with such items as national output, inflation, unemployment, taxes, and economic indicators that reflect the "health" of the national economy
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microeconomics
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economics of individual businesses and specific markets. It also examines the economic behavior of individual people and households
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