Introduction to Economics: Microeconomics vs. Macroeconomics

Vocabulary flashcards covering core introductory economics terms from the lecture transcript, including microeconomics, macroeconomics, inflation, unemployment, economic growth, productivity, and GDP.

Microeconomics

The branch of economics focused on how firms (producers) and households (consumers) make decisions and interact with each other in markets.

Macroeconomics

The branch of economics that studies economy-wide phenomena and the functioning, development, and growth of the overall economy.

Inflation

An overall level price increase across the economy, making everyday goods, services, transit, and housing more expensive overall.

Unemployment Rate

A metric representing the proportion of people in the overall job market who are unable to find a job (e.g., a 4% rate means 4 out of every 100 people in the economy cannot get a job).

Economic Growth

The long-term development and expansion of an entire economy, which can cause country economic rankings to change over time.

Productivity

A country's ability to produce goods and services efficiently, serving as one of the main factors driving economic growth.

Gross Domestic Product (GDP)

An indicator used to measure economic performance and compare or rank the economic strength of different countries, analogous to a student's GPA for academic performance.