What is Economics?

1. market value of all goods and services produced by the economy in a given year
3. total number of units at a particular price
5. graphical illustration of the relationship between price and quantity supplied
7. study of how humans make choices under conditions of scarcity
10. looks at the economy as a whole
11. the relationship between the price in a market and the amount that producers make available for sale
12. good or service that can be used in place of another good or service
16. economic effort is devoted to goas passed down from a ruler or ruling class (the government)
18. large number of buyers and sellers, no one can control the market price
21. higher prices result in a lower quantity demanded
23. periods of increasing and decreasing GDP
24. point in the business cycle fluctuation during which growth slows, unemployment increases, and pricing pressure subsides.
25. government does not intervene in any way. Ideal type of market economy

2. the amount of goods and services consumers are willing and able to purchase at each price
4. exists when human wants for goods and services exceed the available supply
6. shows relationship between price and qty. demanded on a graph
8. focuses on the actions of individual agents within the economy
9. what must be given up to obtain something desired
13. characterized by increasing employment, economic growth, and upward pressure on prices (rising economic indicators)
14. relationship that a higher price leads to a higher quantity supplied
15. extended period of decline with no improving indicators
17. decisions about what products are available and at what prices are determined through the interaction of supply and demand
19. what a buyer pays for a unit of the specific good or service
20. any situation that brings together buyers and sellers of goods and services
22. quantity supplied equals quantity demanded