Macroeconomics
The field of economics that looks at the broader economy.
What is macroeconomics?
The name for the model which shows how an economy is able to produce two resources efficiently.
What is the/a production possibilities curve/frontier/line?
Alternative: PPC/PPL/PPF
The exchange of goods and services.
What is trade?
The relationship between price and how much people are willing to buy at that price.
What is demand?
What is a price ceiling?
The shortage of resources compared to an uncapped desire.
What is scarcity?
The name for the best thing given up when making a decision.
What is opportunity cost?
The act of focusing on production of a single good, usually due to a comparative advantage in that good.
What is specialization?
The relationship between price and how much suppliers will produce of that good.
What is supply?
A limitation on the minimum price of an item.
What is a price floor?
The medium-term fluctuation of the economy.
What is the business cycle?
The PPC moves this direction during a contraction of the economy.
What is left?
The ratio of goods which is considered an acceptable exchange.
What are terms of trade?
The price at which no surplus or shortage exists.
What is equilibrium?
A market that forms when goods cannot be freely traded.
What is a black market?
A drop in output, usually contracting the economy.
What is recession?
The practical use of science, often expanding the PPC.
What is technology?
The advantage of an entity that can produce the largest quantity of a good given a set amount of resources.
What is absolute/absolute advantage?
Any of the factors which change demand.
[Any of these is acceptable]
What is the number of consumers?
What is market expectations of price?
What is prices of related goods?
What is income?
What is consumer taste?
This is generated when buyers spend time, money, and effort dealing with a price control.
What are wasted resources?
A rise in output, usually expanding the economy.
What is expansion?
What is infeasible?
The advantage of an entity that can sacrifice the least amount of one good to produce this good.
What is comparative/comparative advantage?
Any of the factors that change supply.
[Any of these is acceptable]
What is the number of producers?
What is market expectations of price?
What is prices of related goods?
What is prices of input?
What is change in technology?
This is a price floor scenario where an individual willing to pay a higher price is less likely to get a good compared to an individual who may not want the good as much.
What is inefficient allocation to consumers?