OPENSTAX PRINCIPLES OF ECONOMICS CHAPTER 1
QUESTIONS AND ANSWERS 2024
circular flow diagram - (ANSWER)a diagram that views the economy as consisting of
households and firms interacting in a foods and services market and a labor market
command economy - (ANSWER)an economy where economic decisions are passed down from
government authority and where resources are owned by the government
division of labor - (ANSWER)the way in which the work required to produce a good or service
is divided into tasks performed by different workers
economics - (ANSWER)the study of how humans make choices under conditions of scarcity
goods and services market - (ANSWER)a market in which firms are sellers of what they produce
and households are buyers
gross domestic product (GDP) - (ANSWER)measure of the size of total production in an
economy
labor market - (ANSWER)the market in which households sell their labor as workers to business
firms or other employees
macroeconomics - (ANSWER)the branch of economics that focuses on broad issues such as
growth, unemployment, inflation, and trade balance
market - (ANSWER)interaction between potential buyers and sellers; a combination of demand
and supply
QUESTIONS AND ANSWERS 2024
circular flow diagram - (ANSWER)a diagram that views the economy as consisting of
households and firms interacting in a foods and services market and a labor market
command economy - (ANSWER)an economy where economic decisions are passed down from
government authority and where resources are owned by the government
division of labor - (ANSWER)the way in which the work required to produce a good or service
is divided into tasks performed by different workers
economics - (ANSWER)the study of how humans make choices under conditions of scarcity
goods and services market - (ANSWER)a market in which firms are sellers of what they produce
and households are buyers
gross domestic product (GDP) - (ANSWER)measure of the size of total production in an
economy
labor market - (ANSWER)the market in which households sell their labor as workers to business
firms or other employees
macroeconomics - (ANSWER)the branch of economics that focuses on broad issues such as
growth, unemployment, inflation, and trade balance
market - (ANSWER)interaction between potential buyers and sellers; a combination of demand
and supply
