Microeconomics
The study of how individuals, households, and firms make decisions to allocate scarce resources.
What is microeconomics?
The total value of goods and services produced within a country in one year.
What is GDP (Gross Domestic Product)
An economic system where the government makes all production and distribution decisions.
What is a command economy?
He is considered the father of modern economics.
Who is Adam Smith?
This occurs when there are not enough resources to satisfy all wants and needs.
What is scarcity?
A prolonged period of economic decline, typically defined as two consecutive quarters of negative GDP growth.
What is a recession?
An economic system where supply and demand determine production and prices.
What is a market economy?
Developed the concept of comparative advantage in international trade.
Who is David Ricardo?
The law that states consumers buy more of a good when its price decreases.
What is the law of demand?
The measure of price level changes over time, affecting purchasing power.
What is inflation?
The combination of private enterprise and government regulation in an economy.
What is a mixed economy?
The author of "The Wealth of Nations" and advocate for free-market economics.
Who is Adam Smith?
The point at which supply and demand curves intersect.
What is the equilibrium point?
The organization responsible for controlling a country's money supply and monetary policy.
What is a central bank (e.g., RBA (Reserve Bank Australia)?
The economic system based on communal ownership and the absence of class.
What is communism?
he economist who wrote "Das Kapital" and developed theories on class struggle and surplus value.
Who is Karl Marx?
When a single firm dominates the market and sets prices.
What is a monopoly?
This indicator measures changes in the prices of goods and services bought by consumers.
What is the Consumer Price Index (CPI)?
The principle of private ownership and profit motive in an economy.
What is capitalism?
Economic theory stating that government intervention can stabilize the economy.
What is Keynesian economics?