Exam 1 Flashcards
A period of high growth that raises output above normal capacity
Boom
The buildings, machinery equipment and software used in producing goods and services
Capital stock
The combination of goods that can be consumed as a result of a given production choice
Consumption possibility frontier (CPF)
The study of the economy as a system
Macroeconomics
The study of individual behavior
Microeconomics
A logical view of how things work
Theory
One party equals the loss to another
Zero-sum game
Supplied by both private suppliers and government
Mixed economy
The output of goods and services per worker
Productivity of labour
Concerned with the distribution of well-being among members of the economy
Economic equity
Offers recommendations that incorporate value judgments
Normative economics
Recorded values of variables
Data
The actual price adjusted by the general (consumer) price level in the economy
Real price
The annual percentage increase (decrease) in the level of consumer prices
Inflation (deflation) rate
=(change in values)/original value x 100
Percentage change
