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| 10614887134 | macroeconomics | Concerned with overall ups and downs of the economy. Nations and world. | 0 | |
| 10614887135 | microeconomics | Study of how people make decisions and how those decisions interact. A business or a single product. | 1 | |
| 10614887136 | resources | Anything that can be used to produce something else. | 2 | |
| 10614887137 | scarcity | Resources aren't available in sufficient quantities to satisfy all the various ways a society wants to use it. | 3 | |
| 10614887138 | types of resources | Land, labor, capital, entrepreneurship. | 4 | |
| 10614887139 | land | All resources that come from nature, such as minerals, timber, and petroleum. | 5 | |
| 10614887140 | labor | The effort of workers. | 6 | |
| 10614887141 | entrepreneurship | Describes the efforts of entrepreneurs in organizing resources for production, taking risks to create new enterprises, and innovating to develop new products and production processes. | 7 | |
| 10614887142 | capital | Manufactured goods used to make other goods and services. | 8 | |
| 10614887143 | choice | Since resources are scarce, people must make choices about what to produce and buy. | 9 | |
| 10614887144 | opportunity cost | What you must give up in order to get an item. The next best thing. | 10 | |
| 10614887145 | positive economics | Is the branch of economic analysis that describes the way the economy actually works. | 11 | |
| 10614887146 | normative economics | Makes prescriptions about the way the economy should work. | 12 | |
| 10614887147 | marginal analysis | The study of the costs and benefits of doing a little bit more of an activity versus a little bit less. Optimal: MC=MB. The more you do of something, benefits decrease and costs increase. | 13 | |
| 10614887148 | marginal cost | The cost of doing one more of something. | 14 | |
| 10614887149 | marginal benefit | The gains of doing one more of something. | 15 | |
| 10614887150 | unemployment | Number of people actively working for work but not currently employed. People spend less money, so businesses get less money, so more people get laid off. | 16 | |
| 10614887151 | business cycle | Short-run alternation between expansions and recessions. | 17 | |
| 10614887152 | expansion | Also known as recoveries. Periods of economic upturns when output and employment are rising. More people can get jobs because more are hiring. | 18 | |
| 10614887153 | economic growth | An increase in the maximum amount of goods and services an economy can produce. | 19 | |
| 10614887154 | recession | Periods of economic downturns when output and employment are falling. People lose jobs and less people are hiring. | 20 | |
| 10614887155 | peaks | The highest point of an expansion. | 21 | |
| 10614887156 | troughs | The lowest point of a recession. | 22 | |
| 10614887157 | labor market | The supply of available workers in relation to available work. | 23 | |
| 10614887158 | inflation | Rising overall price level. | 24 | |
| 10614887159 | deflation | Falling overall price level. | 25 | |
| 10614887160 | depression | A very deep and prolonged economic downturn. | 26 | |
| 10614887161 | how to calculate opportunity cost | 40 fish=30 coconuts. 1 fish=3/4 coconut.* | 27 | |
| 10614887162 | constant opportunity cost | The curve is a straight line with a slope. The opportunity cost remains the same throughout the whole curve.* | 28 | |
| 10614887163 | increasing opportunity cost | The curve is an actual, "concave" curve. The opportunity is actually small at first, but as resources must be shifted from production of one item to another, the cost increases.* | 29 | |
| 10614887164 | points on a production possibilities curve | Points inside the curve are inefficient, and there is no opportunity cost to increase production of one or both items. Points on the curve are efficient and there is an opportunity cost to increase production of one item. Points outside of the curve are optimal and are caused by gains in trade. | 30 | |
| 10614887165 | shift of PPC | A shift to the right signals economic growth. This is caused by an increase of available resources, such as new technology. | 31 | |
| 10614887166 | gains from trade | People can get more of what they want through trade than they could if they tried to be self-sufficient. This increase in output is due to specialization, when people do more of what they're better at. | 32 | |
| 10614887167 | comparative advantage | The advantage that occurs when their opportunity cost of producing an item is lower for that individual than for others, and therefore gives up less.* | 33 | |
| 10614887168 | absolute advantage | The advantage that occurs when someone can make more of something than someone else, regardless of opportunity cost.* | 34 | |
| 10614887169 | advantages of free trade among nations | Individuals can consume at a higher level then they would without trade. | 35 | |
| 10614887170 | compare calculated opportunity cost | A: 1=3, B: 1=4. A has comparative advantage. * | 36 | |
| 10614887171 | barter | Trade of one good/service for another. Money is not involved. | 37 | |
| 10614887172 | imports | Goods brought into a country. | 38 | |
| 10614887173 | exports | Goods shipped out of a country. | 39 | |
| 10614887174 | range of trade | Any number between the two opportunity costs of different individuals for the same item = acceptable. | 40 | |
| 10614887175 | Adam Smith | Emphasized importance of specialization. | 41 |
