Vocabulary
What is economics?
Economics is the study of how households, firms and governments make choices based on their scarce resources
Name the four factor of productions
-labor
-land
-capital
-entrepreneurship
What does GPD stand for?
Gross domestic product
Would individuals be a part of macroeconomics or microeconomics?
microeconomics
anything we give up when we make a choice is an
opportunity cost
What is macroeconomics?
Macroeconomics is the study of the whole economy with respect to inflation, unemployment, government policy, economic growth and development
What factor of production would a teacher be an example of?
labor
Consumer Price Index
Give an example of macroeconomics
any large scale group; nations
What's the reason behind any choice
the incentive
What is microeconomics?
Microeconomics is buying decision/economic behavior of small groups
What factor of production would a farm be?
land
Stock Markets
the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses
What's the major difference between micro and macroeconomics?
Microeconomics is businesses on a small scale, or individuals
macroeconomics is businesses on a large scale, or governments
Having limited resources but unlimited wants is...
Scarcity
What are opportunity costs?
Opportunity cost is the next best alternative given up when making a decision
What factor of production would a building be considered?
capital
Unemployment Rates
The unemployment rate measures the share of workers in the labor force who do not currently have a job but are actively looking for work.
Would businesses comparing sale prices to overall sales be considered macroeconomics or microeconomics?
It would be considered macroeconomics.
What would the opportunity cost be if you chose to go to school instead of stay at home?
Free time at home would be the opportunity cost
What is the circular flow model?
The circular flow model demonstrates how income moves through society.
What factor of production would involve bringing together the other 3 factors of production to make a new good or service?
entrepreneurship
Interest rates
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed.
When businesses are looking at what customers are buying would that be considered microeconomics or macroeconomics?
It would be considered microeconomics?
The type of economic system used by the US
Mixed Economy