Quizzical Event Flashcards
economics
study of how humans make decisions in the face of scarcity
scarcity
human wants for goods, services and resources exceed what is available
division of labor
the way in which different workers divide required tasks to produce a good or service
specialization
when workers or firms focus on particular tasks for which they are well suited within the overall production process
microeconomics
focuses on the actions of individual agents within the economy, like households, workers, and businesses
macroeconomics
the branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance
monetary policy
policy that involves altering the level of interest rates, the availability of credit in the economy, and the extent of borrowing
fiscal policy
economic policies that involve government spending and taxes
determined by a nations legislative body
john maynard keynes
thought that economics teaches you how to think not what to think
circular flow diagram
shows how households and firms interact in the goods and services market
goods and services market
hosueholds receive goods and services and pay firms for them
labor market
households provide labor and receive payment from firms through wages, salaries, and benefits
traditional economy
typically an agricultural economy where things are done the same as they have always been done
command economy
an economy where economic decisions are passed down from government authority and where the government owns the resources
the government provides some necessities for free
decides what methods of production to use and sets wages
market economy
an economy where economic decisions are decentralized, private individuals own resources and buisnesses supply goods and services based on demand
