Chapter One 💰
focus on one product
Business that ______ are often more successful.
Enviornmental pollution
Economics acknowledges that production of useful goods and services can create problems of _______.
all
Economics is concered with the well being of ______ people.
information
Economics is greatly impacted by how well _______ travels through society
how to think
Economics teaches you ______, rather than not what to.
carpenter carries tools
Economist carry a set of theories like a
derive insights
Economist use theories to ______ about the issue or problem.
use resources
Every society, at every level, must make decisions on how to ______?
growing
Firms will be more likely to hire workers if the overall economy is _______.
economies of scale
For many goods, as the level of production increases, the average cost of producing each individual unit declines
geography
For some goods, specialization can be affected by _________.
18
How many task did Smith acredit he making of a pin to?
government
In a command society, who decided what goods and servies will be produced and at what price?
demand, supply
In a labor market, households __________ and firms ________.
demand, supply
In a product market, households _______ and firms _______.
stay in the family
In a traditional economy, occupations ______.
Economic progress or development
In a traditional economy, there is little
macroeconomy is healthy
In economics, the micro decisions of individual businesses are influenced by whether the _______.
not always the right answer
In economics, the obvious choice is?
higher
In recent decades, the overall trend has been a _____ level of economic freedom around the world.
receive, pay
In the good and services market, households _____ goods and serives and ____ firms for them.
provide, receive payment
In the labor market, households ________provide labor and _______ from firms
Communisim
In the last century, what has emphasized command economies?
market economy
In this type of economy, decision-making is decentralized.
The Wealth of Nations
In what book did Adam Smith introduce the divison and specialization of labor?
Traditional, command, and market
In what three ways has society found to organize an economy?
command economy
In which economy is an economic effort devoted to goals passed down from a ruler or a ruling class?
make decisions
Information helps us _____.
skills
Investing in education can develop a workers _______.
fiscal policy
Involves government spending and taxes and is usually deterinded my a nation's legislative body
monetary policy
Involves policies that affect bank lending, interest rates, and financial capital markets and is conducted by a nation's central bank
way of thinking
Keynes said that economics is not just a subject area but rather a ______.
Information
Many valuable products and serives in the modern economy can take the form of ______.
entagled
Markets and government regulatoins are always
underground economies
Markets where the buyers and sellers make transactions without the government's approval
Complementary perspectives
Microeconomic and macroeconomics are not seperate subjects, but rather ______.
imperfect
Most decisions are ______ because we rarely have all the information we need to make a decision
mixed
Most economies in the world are
New York Stock Exchange
Nothing says market more than the ______.
market
Private enterprise are the basis for which economy?
rules of the game
Regulations always define the _____ in an economy.
Belgium, Korea, and Canada
Smaller economies such as _____ depend on globalization
comprehensive
Smith was the first to address economics in a _________ way.
below
The U.S. economy is _____ the global average.
Interrelated
The economic life of every individual is _________.
Globalization
The expanding cultural, political, and economic connections between people around the world
citizenship
The importance of economics can be linked to good ________.
goods and servies market
The market in which firms sell and households buy
labor market
The market in which households sell labor to business firms or other employees
private enterprise
The means of production are owned and operated by private individuals or groups of private individuals
the higher the income
The more society values the person's output, ____.
simplify
The purpose of a theory is to take a complex issue and ______ it.
ecoomic production
The ratio of exports divided by GDP measures the share of a country's ____ in other countries.
Illuminate different choices
The study of economics does not dictate the answers, but it can
a lake
The use in studying the importance of micro and macro economics can be compared to studying what?
diagrams, graphs, mathmatical equations
Theories can be expressed as _____, _____ and ______.
absolutely free market
There is no such thing as an ____.
strong economy
Trade and specialization is how modern society has evolved into a _______________.
heavily regulated
Underground economies are usually found in ___ economies.
economic dimension
Virtually every major problem facing the world today, has an _______.
trade
What does specialization require?
well and fast
What happens in economics is affected by how _____ and _______ information is disseminated through a society.
air cargo
What has driven fown the transportation cost for sending goods internationally?
the homeless
What is a stark reminder that scarcity of resources is real?
Ancient Eygpt
What is an example of a command economy?
What is an example of new information forums that are rapidly changing how information is distributed?
Standard of living, low unemplyment, and low inflation
What is most important in defining the macroeconomies health?
supply and demand
What is the most well known economic theory?
time
What is the ultimate scarce resource?
a pin
What object did Smith use to demonstrate the division of labor?
asia, africa, south america
What parts of the world are traditional economies found?
71
What percent of online adults use facebook?
Specialization, mastery, and economics of scale
What three reasons did Smith list for the reason of increased production in relation to the division of labor?
fiscal and monetary
What two policies fall under macroeconomics?
1776
What year did the formal study of economics began?
a greater quantity
When the tasked involved with producing a goof or service are divided and subdivided, workers and businesses can produce ______.
Hong Kong
Which country has the highest economic freedom?
North Korea
Which country has the least amount of economic freedom?
traditional
Which is the oldest economy?
theory of consumer behavior and theory of the firm
Which two concepts or theories originate from the study of microeconomics?
Cuba and North Korea
Who currently has a command economy?
Congress and the executive branch
Who dictates the United States's fiscal policy?
federal reserve
Who dictates the United States's monetary policy?
Adam Smith
Who introduced the idea of the division and specialization of labor?
John Maynard Keynes
Who is one of the most influencial economist of modern times?
Adam Smith
Who is the father of economics?
Improvements in shipping, innovations in comupting, and international agreements
Why has globalization occured?
theory
a simplified representation of how two or more variable interact with each other
model
a term some economist use instead of theory
abstract, applied
a theory is more ______ while a model is more _______
circular flow diagram
a visual model that pictures the economy as consisting of two groups: households and firms in which interact in two markets
microeconomics
focuses on the actions of individual agents within the economy, like households, workers, and businesses
exports
goods and services that are produced domestically and sold abroad
imports
goods produced abroad and sold domestically
market forces
in a market economy, economic decisions are determined by ____ and not governments
resources
include labor, tools, land, and raw materials
Microeconomics
looks at the economy as a whole, broad issues
scarcity
means that humans wants for goods and services we want but they exist in limited supply
international trade
one measure of globalization is
fact of life
scarcity is a ________.
Gross Domestic Product
the size of the total production in an economy
Economics
the study of how humans make decisions in the face of scarcity
division of labor
the way a good or service is produced is divided into a number of task that are preformed by different workers instead of all the task being done by the same person
social media giants
what are major forces on the information super highway?
Economic decision
Because resources are scarce, each decision is an
well rounded thinker
A basic understanding of economics makes you a _____________.
specialization
A focus on a particular activity or area of study to the advantage of a person or firm
Traditional economy
A type of economy that organizes their economic affair the way they have always done
market
An institution that brings together buyers and sellers of goods and services wo may be either individuals or business