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| 271757528 | Opportunity Cost | the value of the next best alternative that is not chosen. | 0 | |
| 271757530 | Theory | a simplification of relationships whose purpose is to explain how those relationships work. | 1 | |
| 271757531 | Correlation | when two variables move together. | 2 | |
| 271757539 | Factors of Production or Inputs | Labor, machinery, buildings, and natural resources used to make inputs. | 3 | |
| 271757540 | Outputs | goods and services that consumers want to acquire. | 4 | |
| 271757542 | Open economy | an economy in which exports and imports constitute a large share of GDP. | 5 | |
| 271757543 | Closed economy | an economy in which exports and imports constitute a small share of GDP. | 6 | |
| 271757544 | Recession | a period of time during which the total output of the economy falls. | 7 | |
| 271757546 | Progressive tax | a tax in which the ratio of tax to income rises as income rises. | 8 | |
| 271757547 | Mixed economy | an economy with some public influence over the workings of free markets. There may also be some public ownership mixed in with private property. | 9 | |
| 271757553 | Production Possibilities Frontier | shows the different combinations of various goods can be produced, given the available resources and existing technology. | 10 | |
| 271757554 | Law of Increasing Costs | as the production of a good expands the opportunity cost of producing another unit generally increases. | 11 | |
| 271757555 | Efficiency | using all available resources to produce the maximum amount of output permitted by the current technology. | 12 | |
| 271757557 | Division of Labor | breaking up a task into a number of smaller, more specialized tasks so that each worker can become more adept at a particular job. | 13 | |
| 271757558 | Comparative Advantage | a country produces a particular good less inefficiently as compared with the other country. | 14 | |
| 271757559 | Market System | a form of economic organization in which resource allocation decisions are left to individual producers and consumers acting in their own best interests without central direction. | 15 | |
| 271757560 | Invisible Hand | a phrase coined by Adam Smith to describe how, by pursuing their own self-interests, people in a market system seem to be "led by an invisible hand" to promote societal well-being as a whole. | 16 | |
| 271757561 | Quantity Demanded | the number of units that consumers want to buy over a specified period of time. | 17 | |
| 271757562 | Demand Schedule | a table showing how the quantity demanded of some product during a specified period of time changes as the price of that product changes, holding all other determinants of quantity demanded constant. | 18 | |
| 271757563 | Demand Curve | a graphical depiction of a demand schedule. It shows how the quantity demanded of some product during a specified period of time will change as the price of that product changes, holding all other determinants of quantity demanded constant. | 19 | |
| 271757564 | Shift in a Demand Curve | occurs when any variable other than price changes. If consumers want to buy more at any and all given prices than they wanted previously, the demand curve shifts to the right (or outward). If they desire less at any given price, the demand curve shifts to the left (or inward). | 20 | |
| 271757565 | Quantity Supplied | the number of units that sellers want to sell over a specified period of time. | 21 | |
| 271757566 | Supply Schedule | a table showing how the quantity supplied of some product during a specified period of time changes as the price of that product changes, holding all other determinants of quantity supplied constant. | 22 | |
| 271757567 | Supply Curve | a graphical depiction of a supply schedule. It shows how the quantity supplied of some product during a specified period of time will change as the price of that product changes, holding all other determinants of quantity supplied constant. | 23 | |
| 271757569 | Shortage | an excess of quantity demanded over quantity supplied. When there is a shortage, buyers cannot purchase the quantities they desire. | 24 | |
| 271757570 | Surplus | an excess of quantity supplied over quantity demanded. When there is a surplus, sellers cannot sell the quantities they desire to supply. | 25 | |
| 271757571 | Equilibrium | a situation in which there are no inherent forces that produce change. Changes away from an equilibrium position will occur only as a result of "outside events" that disturb the status quo. | 26 | |
| 271757572 | Law of Supply and Demand | in a free market the forces of supply and demand generally push the price toward the level at which quantity supplied and quantity demanded are equal. | 27 | |
| 271757573 | Price Ceiling | a legal maximum price that may be charged for a commodity. | 28 | |
| 271757574 | Price Floor | a legal minimum price that may be charged for a commodity | 29 | |
| 271757575 | Aggregation | combining many individual markets into one overall market. | 30 | |
| 271757576 | Aggregate Demand Curve | shows the quantity of domestic product that is demanded at each possible value of the price level. | 31 | |
| 271757577 | Aggregate Supply Curve | shows | 32 | |
| 271757578 | Inflation | a sustained increase in the general price level. | 33 | |
| 271757580 | Gross Domestic Product (GDP) | the sum of the money values of all final goods and services produced in the domestic economy and sold on organized markets during a specified period of time, usually a year. | 34 | |
| 271757581 | Nominal GDP | is calculated by valuing all outputs at current prices. | 35 | |
| 271757582 | Real GDP | is calculated by valuing outputs of different years at common prices. | 36 | |
| 271757583 | Final Goods and Services | those that are purchased by their ultimate users. | 37 | |
| 271757584 | Intermediate Good | a good purchased for resale or for use in producing another good. | 38 | |
| 271757585 | Real GDP per capita | the ratio of real GDP divided by the population. | 39 | |
| 271757586 | Deflation | a sustained decrease in the general price level. | 40 | |
| 271757587 | Fiscal policy | The government's plan for spending and taxation. It may be used to steer aggregate demand in the desired direction. | 41 | |
| 271757588 | Stagflation | inflation that occurs while the economy is growing slowly or having a recession. | 42 | |
| 271757589 | Monetary policy | Actions taken by the Federal Reserve to influence aggregate demand by changing interest rates. | 43 | |
| 271757590 | Stabilization Policy | government programs designed to prevent or shorten recessions and to counteract inflation. | 44 | |
| 271757593 | Growth policy | government policies intended to make the economy grow faster in the long run. | 45 | |
| 271757594 | Labor Productivity | the amount of output a worker turns out in an hour (or a week, or a year) of labor. | 46 | |
| 271757595 | Potential GDP | the real GDP the economy could produce if the labor force and other resources were fully employed. | 47 | |
| 271757596 | Labor Force | the number of people holding or seeking jobs. | 48 | |
| 271757597 | Production function | shows the volume of output that can be produced in the economy from the given inputs (such as labor and capital), given available technology. | 49 | |
| 271757598 | Unemployment Rate | the number of unemployed people expressed as a percentage of the labor force. | 50 | |
| 271757599 | Discouraged Worker | an unemployed person who gives up looking for work and is therefore no longer counted as part of the labor force. | 51 | |
| 271757600 | Frictional Unemployment | unemployment that is due to normal turnover in the labor market. It includes people who are temporarily between jobs because they are moving or changing occupations, or for similar reasons. | 52 | |
| 271757601 | Structural Unemployment | workers who have lost their jobs because they have been displaced by automation, because their skills are no longer in demand, or for similar reasons. | 53 | |
| 271757602 | Cyclical Unemployment | the portion of unemployment that is attributable to a decline in the economy's total production. | 54 | |
| 271757603 | Full employment | a situation in which everyone who is willing and able to work can find a job. At full employment, the measured unemployment rate is still positive. | 55 | |
| 271757604 | Unemployment insurance | a government program that replaces some of the wages lost by eligible workers who lose their jobs. | 56 | |
| 271757605 | Purchasing Power | the volume of goods and services that a given sum of money will buy. | 57 | |
| 271757606 | Real Wage Rate | the wage rate adjusted for inflation. | 58 | |
| 271757607 | Relative Price | the price of one good in terms of another good rather than in terms of dollars. | 59 | |
| 271757608 | Real Rate of Interest | the percentage increase in purchasing power that the borrower pays to the lender for the privilege of borrowing. | 60 | |
| 271757609 | Nominal Rate of Interest | the percentage by which the money the borrower pays back exceeds the money that he borrowed, making no adjustment for any fall in purchasing power of this money that results from inflation. | 61 | |
| 271757610 | Index Number | expresses the cost of a market basket of goods relative to the cost of the same basket in a base period. | 62 | |
| 271757611 | Consumer Price Index (CPI) | measured by pricing items representative of a typical urban household budget. | 63 | |
| 271757612 | Deflating | the process of finding the real value of some monetary magnitude by dividing by some appropriate price index. | 64 | |
| 271757613 | GDP Deflator | the price index used to deflate GDP. | 65 | |
| 271757614 | Human Capital | the amount of skill embodied in the workforce. | 66 | |
| 271757615 | Convergence Hypothesis | nations with low levels of productivity tend to have high productivity growth rates so that international productivity differences shrink over time. | 67 | |
| 271757616 | Capital | a nation's supply of plant, equipment, and software. | 68 | |
| 271757617 | Investment | the flow of resources into the production of new capital. | 69 | |
| 271757618 | Capital Formation | the process of building up the capital stock. | 70 | |
| 271757619 | Property Rights | laws and conventions that assign owners the rights to use their property as they see fit while they own it. | 71 | |
| 271757623 | Research and Development | activities aimed at inventing new products or processes, or improving old ones. | 72 | |
| 271757626 | Foreign direct investment | purchase or construction of real business assets—such as factories, offices, and machinery—in a foreign country. | 73 | |
| 271757627 | Multinational corporations | corporations (generally large) which do business in many different countries. | 74 | |
| 271757628 | Aggregate Demand | the total amount that all consumers, business firms, and government agencies are willing to spend on final goods and services. | 75 | |
| 271757629 | Consumer Expenditure (C) | the total amount spent by consumers on newly produced goods and services (excluding purchases of new homes, which are considered investment goods). | 76 | |
| 271757630 | Investment Spending (I) | the sum of the expenditures of business firms on new plant and equipment and households on new homes. Financial "investments" are not included, nor are resales of existing physical assets. | 77 | |
| 271757631 | Government Purchases (G) | the goods and services purchased by all levels of government. | 78 | |
| 271757632 | Net Exports (X - IM) | the difference between U.S. exports and U.S. imports. It indicates the difference between what we sell to foreigners and what we buy from them. | 79 | |
| 271757633 | National Income | the sum of the incomes that all individuals in the economy earned in the forms of wages, interest, rents, and profits. It excludes government transfer payments and is calculated before any deductions are taken for income taxes. | 80 | |
| 271757634 | Disposable Income (DI) | the sum of the incomes of all the individuals in the economy after all taxes have been deducted and all transfer payments have been added. | 81 | |
| 271757635 | Transfer Payments | sums of money that the government gives certain individuals as outright grants rather than as payments for services rendered to employers. | 82 | |
| 271757637 | Consumption Function | shows the relationship between total consumer expenditures and total disposable income in the economy, holding all other determinants of consumer spending constant. | 83 | |
| 271757638 | Marginal Propensity to Consume (MPC) | the ratio of changes in consumption relative to changes in disposable income that produce the change in consumption. On a graph, it appears as the slope of the consumption function. | 84 | |
| 271757641 | Expenditure Schedule | shows the relationship between national income (GDP) and total spending. | 85 | |
| 271757642 | Induced Investment | the part of investment spending that rises when GDP rises and falls when GDP falls. | 86 | |
| 271757643 | Income-Expenditure (or 45° line) Diagram | plots total real expenditure (on the vertical axis) against real income (on the horizontal axis). The 45° line marks off points where income and expenditure are equal. | 87 | |
| 271757644 | Recessionary Gap | the amount by which the equilibrium level of real GDP falls short of potential GDP. | 88 | |
| 271757645 | Inflationary Gap | the amount by which equilibrium real GDP exceeds the full-employment level of GDP. | 89 | |
| 271757647 | Multiplier | the ratio of the change in equilibrium GDP (Y) divided by the original change in spending. | 90 | |
| 271757650 | Aggregate Supply Curve | shows for each possible price level the quantity of goods and services that all the nation's businesses are willing to produce during a specified period of time, holding all other determinants of aggregate quantity supplied constant. | 91 | |
| 271757651 | Productivity | the amount of output produced by a unit of input. | 92 | |
| 271757652 | Aggregate Equilibrium | The combination of real GDP and the price level when the economy is at equilibrium, jointly determined by aggregate demand and aggregate supply. | 93 | |
| 271757653 | Inflation and the Multiplier | The effect of changes in prices on the size of the multiplier. | 94 | |
| 271757659 | Automatic Stabilizer | a feature of the economy that reduces its sensitivity to shocks, such as sharp increases or decreases in spending. | 95 | |
| 3700597402 | Taxation | there are three types of taxation: progressive, recessive, and proportional. | 96 |
