Econo me - Haydn McDonald's

7. a visual model of the economy that shows how dollars flow through markets and firms
11. the comparison among producers of a good according to their productivity
12. a graph that show the combinations of output that the economy can possibly produce given the available factors of production and the available production technology
13. an increase in the overall level of prices in the economy
16. to focus on a particular area
20. the limited nature of society's resources
21. a reciprocal relation between interdependent entities
22. goods produced abroad and sold domestically
23. fluctuations in economic activity, such as employment and production
25. whatever must be given up to obtain some item

1. the comparison among producers according to their opportunity cost
2. the study of how households and firms make decisions and how they interact in markets
3. the impact of one person's actions on the well being of a bystander
4. the study of economy wide phenomena, including inflation, unemployment, and economic growth
5. claim that, other things equal, the quantity demanded of a good falls when the price of the good rises
6. a curve that shows the short run tradeoff between inflation and unemployment
8. the property of society getting the most it can from its scarce resources
9. the property of distributing economic prosperity fairly among the members of society
10. good for which, other things equal, an increase in income leads to an increase in demand
14. claims that attempt to prescribe how the world should be
15. goods produced domestically and sold abroad
17. claims that attempt to describe the world as it is
18. the study of how society manages its scarce resources
19. an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
24. a good for which, other things equal, an increase in income leads to a decrease in demand