Econ Review 1st Quiz

GDP

Gross Domestic Product, is a comprehensive measure of the total market value of all finished goods and services produced within a country's borders during a specific time period

Real GDP

Real gross domestic product

Overview- the standard measure of the value added created through the production of goods and services in a country during a certain period

Nominal inflation

the unadjusted measure of the average increase in prices for goods and services over time, without accounting for changes in purchasing power

circular flow

a simplified representation of an economy showing the continuous movement of money, goods, and services between households and firms

Circular flow graph

Production possibility curve

a graphical model that shows the maximum combinations of two goods or services an economy can produce given its limited resources and fixed technology

Production possibility curve graph

Margin decision  making

an economic principle where decisions are made by evaluating the additional benefits (marginal benefit) and additional costs (marginal cost) of a choice