OPENSTAX PRINCIPLES OF
ECONOMICS 3E - KEY TERMS FROM
ALL CHAPTERS
circular flow diagram - CORRECT ANSWER >>a diagram that
views the economy as consisting of households and firms
interacting in a goods and services market and a labor market
command economy - CORRECT ANSWER >>an economy where
economic decisions are passed down from government authority
and where the government owns the resources
division of labor - CORRECT ANSWER >>the way in which
different workers divide required tasks to produce a good or
service
economics - CORRECT ANSWER >>the study of how humans
make choices under conditions of scarcity
economies of scale - CORRECT ANSWER >>when the average
cost of producing each individual unit declines as total output
increases
,exports - CORRECT ANSWER >>products (goods and services)
made domestically and sold abroad
fiscal policy - CORRECT ANSWER >>economic policies that
involve government spending and taxes
globalization - CORRECT ANSWER >>the trend in which buying
and selling in markets have increasingly crossed national borders
goods and services market - CORRECT ANSWER >>a market in
which firms are sellers of what they produce and households are
buyers
gross domestic product (GDP) - CORRECT ANSWER
>>measure of the size of total production in an economy
imports - CORRECT ANSWER >>products (goods and services)
made abroad and then sold domestically
labor market - CORRECT ANSWER >>the market in which
households sell their labor as workers to business firms or other
employers
,macroeconomics - CORRECT ANSWER >>the branch of
economics that focuses on broad issues such as growth,
unemployment, inflation, and trade balance
market - CORRECT ANSWER >>interaction between potential
buyers and sellers; a combination of demand and supply
market economy - CORRECT ANSWER >>an economy where
economic decisions are decentralized, private individuals own
resources, and businesses supply goods and services based on
demand
microeconomics - CORRECT ANSWER >>the branch of
economics that focuses on actions of particular agents within the
economy, like households, workers, and business firms
model/theory - CORRECT ANSWER >>a representation of an
object or situation that is simplified while including enough of the
key features to help us understand the object or situation
monetary policy - CORRECT ANSWER >>policy that involves
altering the level of interest rates, the availability of credit in the
economy, and the extent of borrowing
, private enterprise - CORRECT ANSWER >>system where private
individuals or groups of private individuals own and operate the
means of production (resources and businesses)
scarcity - CORRECT ANSWER >>when human wants for goods
and services exceed the available supply
specialization - CORRECT ANSWER >>when workers or firms
focus on particular tasks for which they are well-suited within the
overall production process
traditional economy - CORRECT ANSWER >>typically an
agricultural economy where things are done the same as they
have always been done
underground economy - CORRECT ANSWER >>a market where
the buyers and sellers make transactions in violation of one or
more government regulations
allocative efficiency - CORRECT ANSWER >>when the mix of
goods produced represents the mix that society most desires
ECONOMICS 3E - KEY TERMS FROM
ALL CHAPTERS
circular flow diagram - CORRECT ANSWER >>a diagram that
views the economy as consisting of households and firms
interacting in a goods and services market and a labor market
command economy - CORRECT ANSWER >>an economy where
economic decisions are passed down from government authority
and where the government owns the resources
division of labor - CORRECT ANSWER >>the way in which
different workers divide required tasks to produce a good or
service
economics - CORRECT ANSWER >>the study of how humans
make choices under conditions of scarcity
economies of scale - CORRECT ANSWER >>when the average
cost of producing each individual unit declines as total output
increases
,exports - CORRECT ANSWER >>products (goods and services)
made domestically and sold abroad
fiscal policy - CORRECT ANSWER >>economic policies that
involve government spending and taxes
globalization - CORRECT ANSWER >>the trend in which buying
and selling in markets have increasingly crossed national borders
goods and services market - CORRECT ANSWER >>a market in
which firms are sellers of what they produce and households are
buyers
gross domestic product (GDP) - CORRECT ANSWER
>>measure of the size of total production in an economy
imports - CORRECT ANSWER >>products (goods and services)
made abroad and then sold domestically
labor market - CORRECT ANSWER >>the market in which
households sell their labor as workers to business firms or other
employers
,macroeconomics - CORRECT ANSWER >>the branch of
economics that focuses on broad issues such as growth,
unemployment, inflation, and trade balance
market - CORRECT ANSWER >>interaction between potential
buyers and sellers; a combination of demand and supply
market economy - CORRECT ANSWER >>an economy where
economic decisions are decentralized, private individuals own
resources, and businesses supply goods and services based on
demand
microeconomics - CORRECT ANSWER >>the branch of
economics that focuses on actions of particular agents within the
economy, like households, workers, and business firms
model/theory - CORRECT ANSWER >>a representation of an
object or situation that is simplified while including enough of the
key features to help us understand the object or situation
monetary policy - CORRECT ANSWER >>policy that involves
altering the level of interest rates, the availability of credit in the
economy, and the extent of borrowing
, private enterprise - CORRECT ANSWER >>system where private
individuals or groups of private individuals own and operate the
means of production (resources and businesses)
scarcity - CORRECT ANSWER >>when human wants for goods
and services exceed the available supply
specialization - CORRECT ANSWER >>when workers or firms
focus on particular tasks for which they are well-suited within the
overall production process
traditional economy - CORRECT ANSWER >>typically an
agricultural economy where things are done the same as they
have always been done
underground economy - CORRECT ANSWER >>a market where
the buyers and sellers make transactions in violation of one or
more government regulations
allocative efficiency - CORRECT ANSWER >>when the mix of
goods produced represents the mix that society most desires
