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| 8775990101 | economics | the study of scarcity and choice | 0 | |
| 8775992736 | individual choice | decisions by individuals about what to do and what not to do | 1 | |
| 8775995160 | economy | system that coordinates choices about production with choices about consumption, and distributes goods and services to the people that want them | 2 | |
| 8776006077 | market economy | production and consumption are the result of decentralized decisions by many firms and individuals | 3 | |
| 8776011495 | command economy | industry is publicly owned and there is a central authority making porduction and consumption decisions | 4 | |
| 8776018397 | incentives | rewards or punishments that motivate particular choices | 5 | |
| 8776022581 | property rights | establish ownership and grant individuals the right to trade goods and services with each other | 6 | |
| 8776028600 | marginal analysis | study of the costs and benefits of doing a little bit more of an activity versus a little bit less | 7 | |
| 8776034713 | resource | anything that can be used to produce something else. 4 different categories: land, labor, capital, and entrepreneurship | 8 | |
| 8776046963 | entrepreneurship | efforts of entrepreneurs in organizing resources for production, taking risks to create new enterprises, and innovating to develop new products and production processes | 9 | |
| 8776059105 | scarcity | resource not available in sufficient quantities to satisfy all the various ways a society want to use it | 10 | |
| 8776066766 | opportunity cost | the value of what you must give up when you make a particular choice (the next best alternative) | 11 | |
| 8776075274 | microeconomics | stud of how individuals, households, and firms make decisions and how those decisions interact | 12 | |
| 8776080679 | macroeconomics | studies the overall ups and down of the economy | 13 | |
| 8776085418 | economic aggregates | economic measures that summarize data across many different markets ex) GDP, unemployment rate, inflation rate, etc. | 14 | |
| 8776093655 | positive economics | branch of economic analysis that describes the way the economy actually works--facts and description | 15 | |
| 8776100450 | normative economics | makes prescriptions about the way the economy SHOULD work--opinions and suggestions | 16 | |
| 8776113920 | business cycle | alternation between economic downturns and upturns | 17 | |
| 8776118140 | depression | deep and prolonged downturn | 18 | |
| 8776120833 | recessions | periods of economic downturns when output and employment are falling (usually must last at least 6 months) | 19 | |
| 8776127818 | expansions | recoveries, are periods of economic upturns when the output and employment are rising | 20 | |
| 8776134538 | employment | number of people currently working for pay in the economy | 21 | |
| 8776140553 | unemployment | number of people ACTIVELY looking for work but aren't currently employed | 22 | |
| 8776147823 | labor forcce | sum of employment and unemployment | 23 | |
| 8776151170 | unemployment rate | percentage of labor force that is unemployed | 24 | |
| 8776155442 | output | quantity of goods and services produced | 25 | |
| 8776158477 | aggregate output | economy's total production of goods and services for a given time period--falls during a recession and rises in expansion | 26 | |
| 8776167196 | inflation | rising overall price level (2% is desirable) | 27 | |
| 8776173560 | deflation | fall in overall price level--worse than inflation because people hold on to their money | 28 | |
| 8776183552 | price stability | when overall price level is changing only slowly if at all--helps keep the economy stable and avoids uncertainty | 29 | |
| 8776191765 | economic growth | increase in the maximum possible output of an economy--permits a sustained rise in aggregate output over time | 30 | |
| 8776199196 | model | simplified representation used to better understand a real-life situation | 31 | |
| 8776202866 | other things equal assumption | (ceteris paribus) all other relevant factors remain unchanged | 32 | |
| 8776209841 | trade-off | when you give up something in order to have something else | 33 | |
| 8776213137 | production possibilities curve | illustrates the trade-offs facing an economy that produces only two goods. It shows the maximum quantity of one good that can be produced for each possible quantity of the other good produces |  | 34 |
| 8776232084 | efficient | no way to make anyone better off without making at least one person worse off | 35 | |
| 8776236191 | productive efficiency | an economy produces at a point on its production possibilities curve | 36 | |
| 8776249021 | allocative efficiency | economy produces at the point along its production possibilities curve that makes consumers as well off as possible | 37 | |
| 8776258066 | technology | technical means for the production of goods and services | 38 | |
| 8776265166 | trade | people divide tasks among themselves and each person provides a good or service that other people want in return for different goods and services that they want | 39 | |
| 8776276241 | gains from trade | people can get more of what they want through trade than they could if they tried to be self-sufficient | 40 | |
| 8776285311 | specialization | each person specialized in the task that they are good at performing | 41 | |
| 8776289604 | comparative advantage | when the opportunity cost of producing the good or service is lower for an individual than for other people--is what matters in trade | 42 | |
| 8776295994 | absolute advantage | an individual can produce more output with a given amount of input that others | 43 | |
| 8776308623 | terms of trade | indicate the rate at which one good can be exchanged for another | 44 |
