module 1 Flashcards
globalization
the trend in which buying and selling in markets have increasingly crossed national borders
macroeconomics
the branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance
microeconomics
the branch of economics that focuses on actions of particular agents within the economy, like households, workers, and business firms
model
fiscal policies
economic policies that involve government spending and taxes
economies of scale
when the average cost of producing each individual unit declines as total output increases
globalization
the trend in which buying and selling in markets have increasingly crossed national borders
gross domestic product (GDP)
measure of the size of total production in an economy
labor market
the market in which households sell their labor as workers to business firms or other employers
market economy
an economy where economic decisions are decentralized, private individuals own resources, and businesses supply goods and services based on demand
specialization
when workers or firms focus on particular tasks for which they are well-suited within the overall production process
traditional economy
typically an agricultural economy where things are done the same as they have always been done
private enterprise
system where private individuals or groups of private individuals own and operate the means of production (resources and businesses)
