Economic Basics
This is a nation's method for making economic choices about resources, goods, and services.
What is an economy?
This measures how much is produced using a given amount of resources
What is productivity?
This type of economy is based on customs, traditions, and habits.
What is a traditional economy?
This measures the value of goods and services produced within a country.
What is GDP (gross domestic product)?
This is the pattern of expansion and contraction in an economy.
What is the business cycle?
These are things used to produce goods and services.
What are resources?
This refers to basic systems and structures needed for an economy to operate, such as roads and communication systems.
What is infrastructure?
In this economy, consumers and businesses make most economic decisions.
What is a market economy?
This measures the value of goods and services produced by a country's citizens and businesses.
What is GNP (gross national product)?
This phase occurs when the economy is growing and economic activity is increasing.
What is expansion?
This means resources are limited while people's wants are unlimited.
What is scarcity?
A worker producing more goods in the same amount of time is showing an increase in this.
What is productivity?
In this economy, the government makes most economic decisions.
What is a command economy?
This is a general increase in prices over time.
What is inflation?
This phase is a significant decline in economic activity.
What is a recession?
These are the land, labor, capital, and entrepreneurship used to produce goods and services.
What are factors of production?
Land, labor, capital, and entrepreneurship are examples of these
What are factors of production?
This is the activity of starting and managing a business while taking risks.
What is entrepreneurship?
This measures changes in the prices consumers pay for goods and services.
What is the CPI (consumer price index)?
This is the most severe and prolonged decline in economic activity.
What is a depression?
What is the condition where there are not enough resources to satisfy everyone's wants and needs?
What is scarcity?
What factor of production involves people using their skills and labor to produce goods and services?
What is labor?
What type of economy combines parts of a market economy with government involvement?
What is a mixed economy?
This measures changes in the prices producers receive for goods and services.
What is the PPI (producer price index)?
This phase occurs when the economy begins improving after a downturn.
What is recovery?