0.1-0.2 Study Guide

4. The study of how individuals and firms make decisions and how they interact in a marketplace.
5. All of the activities of individuals, firms, and governments within a society or geographic area.
7. The _____ cycle is the fluctuation in an economy between periods of growth and recession.
8. ________ can sometimes improve market outcomes.
9. Something that persuades action.
10. An economic system controlled by private individuals for profit.
12. The study of economy-wide phenomena, including inflation, unemployment, and economic growth.
15. _______ are determined by supply and demand.
17. A group of buyers and sellers.
18. A period of economic decline, with decreasing production, rising unemployment, and reduced consumer spending.
20. The general increase in price level.
21. An economic system where there is social ownership of the means of production.
24. The lowest point of the economic cycle, indicating the end of the contraction phase and the beginning of recovery.
25. _______ and specialization can make everyone better off.
26. The highest point of the economic cycle, marking the end of the expansion phase and the beginning of a slowdown.

1. A period of economic growth characterized by increased production, employment, and consumer spending.
2. An economic system where the government owns the means of production.
3. Supply goes up, prices go _____.
6. Studies the production, distribution, and consumption of goods and services, as well as the transfer of wealth.
11. The scarcity of necessities forces trade-offs between _____ and needs.
13. This cost is something you give up to start something.
14. All economic decisions face a trade-off between wants and _____.
16. In a _____ and control economy, decisions in the marketplace are made by the government, such as decisions on production, distribution, and allocation of resources.
17. Rational people think at the _______, meaning people make decisions based on evaluating costs of making adjustments to a plan.
19. When a single buyer or seller has substantial influence over market price.
22. A defining feature of economics are the problems of how to allocate the world's ______ resources.
23. In a ______ economy, decisions are made by the individual and businesses in the marketplace, not governments.