Economics Final

5. the “invisible hand”
7. an economic system in which individuals, rather than the state, own most of the resources
8. an economy in which production, investment, prices, and incomes are determined centrally by a government.
10. the use of government spending and taxation to influence the economy.
12. a graphic representation of the correlation between the cost of a good or service and the quantity supplied for a given period
14. the value of returns of a product decreases
15. a rise in prices

1. a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved
2. the 3 basic economic questions
3. the change in the behavior of buyers and sellers in response to a price change
4. the fundamental economic problem
6. set of actions available to a nation's central bank to achieve sustainable economic growth by adjusting the money supply.
9. the loss of potential gain from other alternatives when one alternative is chosen
11. at a higher price, consumers will demand a lower quantity of a good
13. an increase in the price of a product will increase the quantity of it supplied