The Circular Flow & Externalities
This model shows money, goods, and resources flowing back and forth between households and firms. What's it called?
The circular flow model
This branch of economics studies individual households, firms, and markets — like one coffee shop's prices.
Microeconomics
This field of study looks at how people make choices when resources are limited. What is it called?
Economics
What term describes not having enough of something to satisfy everyone's wants?
Scarcity
This economic system is built on private ownership of factories, land, and tools, with the goal of earning profit through competition.
Capitalism
Households provide firms with labour, land, and capital — together these three inputs are called the factors of ________.
Production
This branch of economics studies the whole economy — things like national unemployment or inflation.
Macroeconomics
Economics belongs to this broader branch of science that studies society and human behaviour — psychology and sociology belong to it too. What is this branch called?
Social science
When you choose one thing, the next-best option you gave up is called this.
Opportunity Cost
When prices across the whole economy generally rise over time, economists call this ________.
Inflation
In return for factors of production, firms pay households in three ways: wages, rent, and this third form of payment made to owners of capital.
Dividends
A coffee shop deciding how much to charge for a latte is an example of this branch of economics.
Microeconomics
Wants are unlimited, but resources are limited — economists call this basic problem
Scarcity
In the Dollar Decision activity, every item was labelled as either something you must have, or something you'd merely like to have. Name one of these two labels.
Want (or Need)
When prices across the whole economy generally fall over time — the opposite of inflation — economists call this ________.
Deflation
When a transaction affects someone who wasn't part of the deal — like pollution affecting a neighbour — economists call this side effect an ________.
Externality
The Federal Reserve raising interest rates to slow down national inflation is an example of this branch of economics.
Macroeconomics
Economics builds its knowledge the way other sciences do, using this method plus real-world evidence — the same approach used in a chemistry or biology experiment.
The scientific method
A reward or penalty designed to push people toward a certain behaviour — like offering a bounty for dead rats — is called this.
Incentive
Governments aim for steady prices, low joblessness, and consistent growth. Name one specific macroeconomic goal from this list — such as keeping prices from swinging wildly.
Price stability (or any listed macro goal)
Name all three factors of production that households provide to firms.
Labour, land, and capital
A city taxes sugary drinks. This change affects buying decisions in one specific market, and also affects the country's overall inflation rate. Name the two branches of economics that would each study one of these effects.
Microeconomics and macroeconomics
This 18th-century economist, sometimes called the founding father of economics, wrote a famous book called "The Wealth of Nations."
Adam Smith
Economists say understanding the highs and lows of the economy helps you avoid overreacting to booms and recessions — this repeating up-and-down pattern is called the ________.
Business cycle
This macroeconomic goal doesn't mean zero unemployment — some natural joblessness from people between jobs, seasonal work, or shifting industries is expected. Name the goal.
Full employment