________ are the goods and services that one produces abroad and then sells domestically.
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Exports
________ are the goods and services that one produces domestically and sells abroad.
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John Maynard Keynes
________ (1883- 1946), one of the greatest economists of the twentieth century, pointed out that economics is not just a subject area but also a way of thinking.
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Market economies
________ are based on private enterprise: the private individuals or groups of private individuals own and operate the means of production (resources and businesses)
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tradition
Because ________ drives the way of life, there is little economic progress or development.
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Households
________ sell their labor as workers to firms in return for wages, salaries, and benefits.
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theory
A(n) ________ is a simplified representation of how two or more variables interact with each other.
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Firms
________ produce goods and services, which they sell to households in return for revenues.
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Scarcity
________ means that human wants for goods, services and resources exceed what is available.
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Adam Smith
The formal study of economics began when ________ (1723- 1790) published his famous book The Wealth of Nations in 1776.
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Regulations
________ always define the "rules of the game "in the economy.
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Smith
________ introduces the concept of division of labor, which means that the way one produces a good or service is divided into a number of tasks that different workers perform, instead of all the tasks being done by the same person.
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command economy
In a(n) ________, the government decides what goods and services will be produced and what prices it will charge for them.
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Gross domestic product
________ (GDP) measures the size of total production in an economy.
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labor market
In the ________, households provide labor and receive payment from firms through wages, salaries, and benefits.
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market economy
In a(n) ________, decision- making is decentralized.
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It pictures the economy as consisting of two groups-households and firms-that interact in two markets
The circular flow diagram shows how households and firms interact in the goods and services market, and in the labor market
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Market economies are based on private enterprise
the private individuals or groups of private individuals own and operate the means of production (resources and businesses)
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Regulations
The Rules of the Game
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command economy
an economy where economic decisions are passed down from government authority and where the government owns the resources
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division of labor
the way in which different workers divide required tasks to produce a good or service
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economics
the study of how humans make choices under conditions of scarcity
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globalization
growth to a global or worldwide scale
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imports
products (goods and services) made abroad and then sold domestically
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labor market
the market in which workers compete for jobs and employers compete for workers
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macroeconomics
the branch of economics that studies the overall working of a national economy
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microeconomics
the branch of economics that studies the economy of consumers or households or individual firms
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specialization
when workers or firms focus on particular tasks for which they are well-suited within the overall production process
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theory
a well-substantiated explanation of some aspect of the natural world; an organized system of accepted knowledge that applies in a variety of circumstances to explain a specific set of phenomena
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underground economy
a market where the buyers and sellers make transactions in violation of one or more
Studied by 22 people
Note 
Flashcard (124)