Terms : Hide Images
| 4342172650 | Production possibility curve | Shows scarcity of resources, choice, and opportunity cost. |  | 0 |
| 4342172651 | Opportunity cost | The cost of the next best alternative in the, money, or resources, when making an economic desicison. | 1 | |
| 4342207267 | Scarcity | The quantity available is not large enough to satisfy all productive uses. | 2 | |
| 4342210882 | The four factors of production | Land, labor, capital, entrepeneurs/managment. | 3 | |
| 4342216917 | Utility | Usefulness people dwrite from an activity of good. | 4 | |
| 4342218898 | Law of diminishing marginal utility | The more you do something or use a product, the less utility you get from it. | 5 | |
| 4342228313 | Absolute vs comparative advantage | Absolute advantage is whow has the ability to produce more output with a given amount of input(who can make the most. Comparative advantage is who has the lower opportunity cost in producing a good. | 6 | |
| 4342251395 | Law of demand | A higher quantity of a product will be demanded at lower prices and less at higher prices. | 7 | |
| 4342255202 | Law of supply | Suppliers will normally offer more for sale at higher prices and less at lower prices. | 8 | |
| 4352398950 | Surplus | Excess supply; when the quantity supply is greater than what people want to purchase. |  | 9 |
| 4352411160 | Shortage | Excess demand; quantity demanded is greater than quantity supplied. |  | 10 |
| 4352435742 | Nominal values | The face value of anything right now. | 11 | |
| 4352437241 | Real Values | The true, underlying value of something taking into account the changing value of money (accounting for inflation). | 12 | |
| 4352442278 | Aggregates | Economic measures that summarize data across different markets for good, services, workers, and assets. | 13 | |
| 4352452507 | Long run growth | The sustained upward trend in aggregate output over several decades. Long run growth is caused by higher labor productivity of workers. | 14 | |
| 4352459346 | Business cycle | Short run changes between economic downturns (recessions) and economic upturns (expansions). | 15 | |
| 4352470043 | Recession | Real GDP falling over a period of 6 months (2 quarters) usually coupled with unemployment increase. Negative AD shock often caused by a decrease in wealth, increase in price, and increase in unemployment. | 16 | |
| 4352493528 | Depression | Prolonged, deep decline in real GDP and rise in unemployment. | 17 | |
| 4352505975 | Inflation | Positive AD shock. Caused by an increase in wealth, price level, and decreased employment. | 18 | |
| 4352514666 | Stagflation | Negative SRAS shock. Caused by a rise in commodity prices, increased price levels, and increased employment. | 19 | |
| 4352519232 | Expansion | Period of recovery or growth; features rising aggreagate output (GDP) and low unemployment. Positive SRAS shock. Caused by falling commodity prices, decreased price level, and decreased unemployment. | 20 | |
| 4352613945 | Unemployment rate | Unemployed must be looking for a job. The labor force includes those participating and looking to participate. |  | 21 |
| 4352623699 | Structural unemployment | Mismatch between people and jobs (ie. changes in technology); will always exist in growing economy. | 22 | |
| 4352626566 | Frictional unemployment | Jobs exist, but unemployed have not found them yet, because this process takes time (this will always exist) | 23 | |
| 4352633320 | Demand deficient(cyclical) unemployment | Not enough jobs to go around (bad); also known as cyclical unemployment | 24 | |
| 4352638991 | Natural/full employment | Frictional and structural (expected to exist). Lowest possible unemployment rate. | 25 | |
| 4352657221 | GDP(aggregate output) | Gross domestic production; broad measure of a nation's production; it is the value of all NEW, LEGAL, and MEASUREABLE production within a nation of goods/services in a given year. Problem: It does not account for used items, items produced elswhere, anything illegal, or intermediate products. |  | 26 |
| 4352688271 | GDP per capita |  | 27 | |
| 4352693491 | Monetary policy | Trying to stabilize economy using interest rate manipulation or changing the amount of money in circulation. | 28 | |
| 4352777677 | Fiscal policy | Tries to stabilize the economy through changes in taxes or government spending. | 29 | |
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