Economic Systems
Factors of Production
Economic Perspectives
The Business Cycle
Labor Force
100

An alternative to a market economy is a _______________ in which industry is publicly owned and there is a central authority making production and consumption decisions.

  • Command Economy
100

______________ represents all resources that come from nature like timber, water, minerals, ect.

  • Land
100
  • The branch of economics concerned with how individuals make decisions and how those decisions interact is called _________________.
  • Microeconomics
100

This is the highest point of a business cycle and is followed by a contraction.

  • Peak
100

__________________ is the total number of people who are currently working for pay.

  • Employment
200

A _________________, is an economy in which production and consumption are the result of decentralize decisions by many firms and individuals.

  • Free-Market Economy
200

_________________ is the the activity of setting up a business or businesses, taking on financial risks in the hope of profit.

  • Entrepreneurship
200

__________________ focuses on the bigger picture, the overall ups and downs of the economy.

  • Macroeconomics
200

The economy experiences occasional economic downturns known as _______________, periods in which output and employment are falling.

  • Recession
200

______________________ is the total number of people who are actively looking for work but aren’t currently employed.

  • Unemployment
300
  • The reason we have an economy, rather than many self-sufficient individuals, is that there are ______________________. By dividing tasks and trading, two people can each get more of what they want than they could get by being self-sufficient.
  • Gains from trade
300

_______________, machinery, buildings, tools, and all other manufactured goods used to make other goods and services.

Capital

300

Economist call the value of the next best alternative that you must give up when you make a particular choice an ______________________.

  • Opportunity cost
300

This is an economic upturn, period in which output and employment are rising, known as _________________.

  • Expansions
300

A country’s _______________ is the sum of employment and unemployment.

  • Labor force
400
  • Let’s say Alex is better than Kirk at producing both type of goods. Alex can catch more fish in a week, and he can also gather more coconuts. This means that Alex has an ___________________ in both activities. He can produce more output with a given amount of input than Kirk can.
  • Absolute Advantage
400

________________ is all the effort of workers.

  • Labor
400

Economic analysis that is used to answer questions about the way the economy works, questions that have definite right and wrong answers, is known as ________________.

  • Positive economics
400

Between 1970 and 2018, the economy experienced substantial _________________, a rise in the overall price level.

  • Inflation
400

Most countries and economist have a goal of ________________, meaning that the overall price level is changing slowly or not at all to avoid uncertainty about prices.

  • Price Stability
500

An individual has a _____________________ in producing if the opportunity cost of that production is lower for that individual than for other people.

Comparative Advantage

500

The is a simplified model of an economy that looks at the trade-offs of a country producing two goods.

  • Production Possibility Curve
500
  • Economic analysis that involves saying how the economy should work is known as __________________.
  • Normative economics
500

A ________________________ is a very deep and prolonged downturn; fortunately, the United States hasn’t had one since the 1930’s .

  • Depression
500

The economy’s total production of goods and services for a given time period, usually a year.

  • Aggregate output (GDP)
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