Chapter 8.1 Flashcards
What is macroeconomics?
Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies.
What is microeconomics?
Microeconomics is a branch of economics that studies the behaviour of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.
What is a recession?
A recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending. A recession is defined as ‘two consecutive quarters of negative economic growth’.
What is an economy?
An economy is made up of all activities undertaken for the purpose of producing, distributing and consuming goods and services in a region or country.
What do we use an economic system for?
We use an economic system to coordinate the production and distribution of goods and services within our economy.
What are needs?
Needs are possessions that are required for survival.
e.g Food, Water, Shelter, Clothing
What are wants?
Wants are possessions that aren’t required for survival, but we desire them because we like the idea of having them.
What are consumers?
Whenever we make use of goods and services we are said to consume those goods and services, and so we are regarded as consumers. As we all consume goods and services, we are all participants in the Australian economy.
What are producers?
All individuals, organisations and businesses that provide goods and services are known as producers. (This term does not just refer to the manufacture of goods in a factory but extends to all those who provide goods and services).
