RECAP Flashcards
examines individual economic agents
focuses on the behavior of individuals
informs policies related to specific
market
MICROECONOMICS
examines the economy as a whole
studies the economy as a whole
informs policies aimed at stabilizing the
economy at a national level
MACROECONOMICS
consume goods and
services/offers production factors;
maximize utility
CONSUMERS
ECONOMIC AGENTS
CONSUMERS
PRODUCERS
PUBLIC SECTORS
regulate the
economy; maximize the well-being of
the society
THE PUBLIC SECTOR
produce goods & services;
maximize profit
PRODUCERS
the development of new ideas/innovation
ENTREPRENEURSHIP
money used to buy resources
RESOURCES
- natural resources used as raw materials
LAND
work done by people
LABOR
refers to attempts to use monetary policy or fiscal policy to stimulate the economy.
ECONOMIC STIMULUS
explains that as prices
rise, the quantity supplied by producers
increases, and as prices fall, the quantity
supplied decreases, illustrated by an
upward-sloping supply curve on a graph.
LAW OF SUPPLY
As the price of a good/service rises,
consumer demand decreases; as the price
falls, demand increases, as shown by a
downward-sloping demand curve on a
graph
LAW OF DEMAND
when the price of a product
or service rises, the quantity demanded by
consumers decreases, and conversely,
when the price drops, the demand
increases
INVERSE RELATIONSHIP
explains that as prices
rise, the quantity supplied increases, and
vice versa, shown by an upward-sloping
supply curve
DIRECT RELATIONSHIP
