Chapter 1-Key Terms
Across
- 1. policy that involves altering the level of interest rates, the availability of credit in the economy, and the extent of borrowing
- 9. a market in which firms are sellers of what they produce and households are buyers
- 11. the branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance
- 13. a market where the buyers and sellers make transactions in violation of one or more government regulations
- 14. the study of how humans make choices under conditions of scarcity
- 17. the way in which different workers divide required tasks to produce a good or service
- 19. an economy where economic decisions are decentralized, private individuals own resources, and businesses supply goods and services based on demand
- 20. products (goods and services) made abroad and then sold domestically
- 21. when workers or firms focus on particular tasks for which they are well-suited within the overall production process
Down
- 2. a diagram that views the economy as consisting of households and firms interacting in a goods and services market and a labor market
- 3. system where private individuals or groups of private individuals own and operate the means of production (resources and businesses)
- 4. products (goods and services) made domestically and sold abroad
- 5. typically an agricultural economy where things are done the same as they have always been done
- 6. a representation of an object or situation that is simplified while including enough of the key features to help us understand the object or situation
- 7. an economy where economic decisions are passed down from government authority and where the government owns the resources
- 8. the trend in which buying and selling in markets have increasingly crossed national borders
- 10. measure of the size of total production in an economy
- 12. when the average cost of producing each individual unit declines as total output increases
- 15. economic policies that involve government spending and taxes
- 16. the market in which households sell their labor as workers to business firms or other employers
- 18. when human wants for goods and services exceed the available supply
- 19. interaction between potential buyers and sellers; a combination of demand and supply