100 Economics Terms || All Correct.

Scarcity correct answers the limited nature of society's resources Economics correct answers the study of how society manages its scarce resources Efficiency correct answers the property of society getting the most it can from its scarce resources Equity correct answers the property of distributing economic prosperity fairly among the members of society Opportunity cost correct answers whatever must be given up to obtain some item Market economy correct answers an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services Externality correct answers the impact of one person's actions on the well being of a bystander Inflation correct answers an increase in the overall level of prices in the economy Phillips curve correct answers a curve that shows the short run tradeoff between inflation and unemployment Business cycle correct answers fluctuations in economic activity, such as employment and production Circular flow diagram correct answers a visual model of the economy that shows how dollars flow through markets and firms Production possibilities curve correct answers 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 correct answers the study of how households and firms make decisions and how they interact in markets Macroeconomics correct answers the study of economy wide phenomena, including inflation, unemployment, and economic growth Positive statements correct answers claims that attempt to describe the world as it is Normative statements correct answers claims that attempt to prescribe how the world should be Interdependence correct answers a reciprocal relation between interdependent entities