An American consumer who buys a Ferrari that was produced in Italy is an example of a US... - import
Who conducts fiscal policy? - The executive branch
The nation's legislative body
Congress
What is the process in which workers select specialized tasks to make a product? - Division of labor
Who conducts monetary policy? - The country's central bank
Typically an agricultural economy where things are done the same as they have always been done -
Traditional Economy
An economic structure where economic decisions are passed down from government planners where
factors of production are owned by the government - Command economy
An economy where economic decisions are conducted through spontaneous order, factors of
production are owned by individuals and businesses supply goods and services based on demand -
Market economy
the social science that seeks to understand the choices people make in using scarce resources to meet
their unlimited wants - economics
A product that is produced in the US and sold abroad is a US - export
The study of economics is primarily concerned with: - Making the best use of scarce resources
The role of an assumption in an economic theory is to: - simplify the theory
, The total dollar amount of all final goods and services produce within a country's borders in one year -
gross domestic product
In the circular flow model, households: - Buy products and sell resources (labor, capital & natural
resources)
When economists refer to underground economies, they are talking about: - Black markets, Employees
being paid under the table, Illegal trade
Microeconomics is concerned with: - The individual units that make up the whole of the economy
A tradeoff between two goods (or services) that could be produced
The maximum combinations of two goods (or services) that can be produced given the economy's
available knowledge and factors of production
The efficient use of resources, points beyond the PPF are unattainable and points inside the PPF are
inefficient - The Production Possibility Frontier shows
Marginal analysis is used to - Examine the decisions of incremental change
What is the term that economists use to describe the satisfaction or happiness gained from consuming a
product? - utility
The law of diminishing marginal utility - Shows the general pattern of higher levels of happiness for the
first few units consumed compared to the last few units consumed
How can society increase productivity - more land, more labor, more capital. innovation
budget constraint - shows the maximum quantity of two products that a person can purchase based on
the price of the products and the person's budget.
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