Across
- 2. The Policy that involves altering the level of interest rates, the availability of credit in the economy, and the extent of borrowing
- 3. at the existing price, the quantity demanded exceeds the quantity supplied; also called excess demand
- 4. a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls
- 6. Adam Smith's concept that individuals' self-interested behavior can lead to positive social outcomes
- 12. the branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance
- 16. an economy where economic decisions are passed down from government authority and where the government owns the resources
- 17. when human wants for goods and services exceed the available supply
- 18. products (goods and services) made domestically and sold abroad
- 19. when a currency is worth more in terms of other currencies; also called “strengthening”
- 20. whatever serves society in four functions: as a medium of exchange, a store of value, a unit of account, and a standard of deferred payment.
- 21. the resources such as labor, materials, and machinery that are used to produce goods and services; also called factors of production
- 22. market the market in which households sell their labor as workers to business firms or other employers
- 25. way in which different workers divide required tasks to produce a good or service
- 27. at the existing price, quantity supplied exceeds the quantity demanded; also called excess supply
- 28. a diagram that views the economy as consisting of households and firms interacting in a goods and services market and a labor market
- 29. a balance sheet with a two-column format, with the T-shape formed by the vertical line down the middle and the horizontal line under the column headings for “Assets” and “Liabilities”
- 33. when the mix of goods produced represents the mix that society most desires
- 34. when a currency is worth less in terms of other currencies; also called “weakening”
- 35. the extra benefit consumers receive from buying a good or service, measured by what the individuals would have been willing to pay minus the amount that they actually paid
- 36. This has no intrinsic value, but is declared by a government to be the country's legal tender
Down
- 1. institution which conducts a nation’s monetary policy and regulates its banking system
- 5. a price floor that makes it illegal for an employer to pay employees less than a certain hourly rate
- 7. the loss in social surplus that occurs when a market produces an inefficient quantity. This is usually caused by government intervention
- 8. a diagram that shows the productively efficient combinations of two products that an economy can produce given the resources it has available.
- 9. measure of the size of total production in an economy
- 10. the interest rate charged by the central bank on the loans that it gives to other commercial banks
- 11. products (goods and services) made abroad and then sold domestically
- 13. measures cost by what we give up/forfeit in exchange; opportunity cost measures the value of the forgone alternative
- 14. the situation where quantity demanded is equal to the quantity supplied; the combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause price or quantity to change
- 15. a broad measure of the balance of trade that includes trade in goods and services, as well as international flows of income and foreign aid
- 23. the gap, if any, between a nation’s exports and imports
- 24. the relationship between price and the quantity demanded of a certain good or service
- 26. These are the term we use for costs that are made in the past, that we cannot get back.
- 29. gap between exports and imports
- 30. the price where quantity demanded is equal to quantity supplied
- 31. a good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income falls
- 32. economic policies that involve government spending and taxes