Macroeconomics Principles

A set of vocabulary flashcards covering key concepts in macroeconomics.

Opportunity Cost

The value of what you must give up in order to acquire an item.

Trade-offs

Compromises made when making decisions, particularly in 'how much' scenarios.

Incentives

Factors that motivate individuals to act in certain ways to improve their circumstances.

Equilibrium

A state where markets balance supply and demand, and individuals do not have the incentive to change their behavior.

Economic Growth

An increase in an economy's capacity to produce goods and services over time.