+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
The word that comes from the Greek word “one who
manages a household”
|
Economy
|
|
Resources are
|
Scarce for households and scarce for economics
|
|
1. The
principle that “trade can make everyone better off” applies to interactions and
trade between:
|
A. Families
b. States
within the United States
c. Nations
|
|
Who wrote the Wealth of Nations?
|
Adam Smith
|
|
Wealth of Nations and the
Declaration of Independence shares the point of view that ___.
|
Individuals are best left to their own devices
without the government guiding their actions
|
|
An example of externality
|
impact of
pollution from a factory on the health of people in the vicinity of the factory
|
|
In a market economy, who makes the decisions that guide most economic activity?
|
Households and firms
|
|
The principle that "people face trade offs" applies to
|
Individuals, families, societies
|
|
Economists study
|
The management of scare resources
|
|
Most economists believe that an increase in the
quantity of money results is:
|
A. An
increase in the demand for goods and services
b. Lover
unemployment in the short run
c. Higher
inflation in the long run
|
|
The business cycle
|
Irregular fluctuations in economic activity
|
|
A circular flow diagram is a model that
|
A. Helps
to explain how participants in the economy interact with one another
b. Helps
to explain how the economy is organized
|
|
In the circular flow diagram the factors of
production
|
Labor, land, capital
|
|
What arrow represents the flow of goods and services?
|
The inside arrow starting from Markets for goods and Services ending/pointing to households
|
|
What arrow represents the flow of spending by households?
|
The outside arrow starting from households and pointing to markets for goods and services
|
