The study of how individuals, businesses, and governments make choices about allocating scarce resources to satisfy unlimited wants.
What are the two main branches of economics?
Microeconomics and Macroeconomics.
What is the law of demand?
As the price of a good or service increases, the quantity demanded decreases, and vice versa, assuming all other factors remain constant.
What is the law of supply?
As the price of a good or service increases, the quantity supplied increases, and vice versa, assuming all other factors remain constant.
What is inflation?
A sustained increase in the general price level of goods and services in an economy over a period of time.
What is GDP?
Gross Domestic Product: The total value of all goods and services produced within a country over a specific period of time.
What is opportunity cost?
The value of the next best alternative that must be forgone in order to pursue a certain action.
What is a monopoly?
A market structure in which there is a single seller and many buyers, giving the seller significant control over price and supply.
What is a market economy?
An economic system in which production and distribution are determined by the interactions of buyers and sellers.
What is fiscal policy?
The use of government spending and taxation to influence the economy.
What is a tariff?
A tax or duty imposed on imported or exported goods.
What is the labor force participation rate?
The percentage of the population aged 16 and older that is employed or actively seeking employment.
What is aggregate demand?
The total demand for goods and services in an economy at a given time.
What is a recession?
A significant decline in economic activity that lasts for an extended period of time.
What is the law of diminishing marginal utility?
The principle that as a person consumes more of a good, the additional satisfaction or utility derived from each additional unit of the good decreases.