100 ECONOMICS TERMS QUESTIONS AND GRADED ANSWERS,
100% GUARANTEE
Scarcity - the limited nature of society's resources
Economics - the study of how society manages its scarce resources
Efficiency - the property of society getting the most it can from its scarce resources
Equity - the property of distributing economic prosperity fairly among the members of
society
Opportunity cost - whatever must be given up to obtain some item
Market economy - an economy that allocates resources through the decentralized
decisions of many firms and households as they interact in markets for goods and services
Externality - the impact of one person's actions on the well being of a bystander
Inflation - an increase in the overall level of prices in the economy
Phillips curve - a curve that shows the short run tradeoff between inflation and
unemployment
Business cycle - fluctuations in economic activity, such as employment and production
Circular flow diagram - a visual model of the economy that shows how dollars flow
through markets and firms
, Production possibilities curve - a graph that show the combinations of output that the
economy can possibly produce given the available factors of production and the available
production technology
Microeconomics - the study of how households and firms make decisions and how they
interact in markets
Macroeconomics - the study of economy wide phenomena, including inflation,
unemployment, and economic growth
Positive statements - claims that attempt to describe the world as it is
Normative statements - claims that attempt to prescribe how the world should be
Interdependence - a reciprocal relation between interdependent entities
Specialization - to focus on a particular area
Absolute advantage - the comparison among producers of a good according to their
productivity
Comparative advantage - the comparison among producers according to their opportunity
cost
Imports - goods produced abroad and sold domestically
Exports - goods produced domestically and sold abroad
100% GUARANTEE
Scarcity - the limited nature of society's resources
Economics - the study of how society manages its scarce resources
Efficiency - the property of society getting the most it can from its scarce resources
Equity - the property of distributing economic prosperity fairly among the members of
society
Opportunity cost - whatever must be given up to obtain some item
Market economy - an economy that allocates resources through the decentralized
decisions of many firms and households as they interact in markets for goods and services
Externality - the impact of one person's actions on the well being of a bystander
Inflation - an increase in the overall level of prices in the economy
Phillips curve - a curve that shows the short run tradeoff between inflation and
unemployment
Business cycle - fluctuations in economic activity, such as employment and production
Circular flow diagram - a visual model of the economy that shows how dollars flow
through markets and firms
, Production possibilities curve - a graph that show the combinations of output that the
economy can possibly produce given the available factors of production and the available
production technology
Microeconomics - the study of how households and firms make decisions and how they
interact in markets
Macroeconomics - the study of economy wide phenomena, including inflation,
unemployment, and economic growth
Positive statements - claims that attempt to describe the world as it is
Normative statements - claims that attempt to prescribe how the world should be
Interdependence - a reciprocal relation between interdependent entities
Specialization - to focus on a particular area
Absolute advantage - the comparison among producers of a good according to their
productivity
Comparative advantage - the comparison among producers according to their opportunity
cost
Imports - goods produced abroad and sold domestically
Exports - goods produced domestically and sold abroad
