ECON Vocab

2. Branch of economics that focuses on individuals, firms, and government agencies that compose the larger economy
4. economic policies that involve government spending and taxes
5. an economy where economic decisions are passed down from government authority and where the government owns the resources
9. This system combines market signals and government directives to direct economic outcomes
10. policy that involves altering the level of interest rates, the availability of credit in the economy, and the extent of borrowing

1. an economy where economic decisions are decentralized, private individuals own resources, and businesses supply goods and services based on demand
3. The way in which workers divide the workload between different people
6. Branch of economics that focuses on the behavior of an entire economy; the “big picture”
7. Each worker focuses on a particular task
8. As production increases, the average cost of producing each unit declines