Ch 1 - What is Economics?

________: any movement which indicates that more output is being produced.

________: whenever a choice is made by an economic agent concerning the use of its resources, something is given up or sacrificed.

________: ability to be maintained at a certain rate or level.

________: household and firm sectors spend money on forgein goods and services.

________: includes all the human resources used in producing goods.

________: the choices consumers and producers make in response to the changes in the dynamic world.

________: is one that is scarce and whose use involves an opportunity cost.

________: focuses on the factors affecting the economy as a whole, such as economic growth and the way well being is being maintained by economic growth,

________: when the economy is using all of its resources to the fullest extent possible.

________: any income that leaves the firm sector.

Gross national income (________): amount of money in circular flow.

________ curve (PPC): Is a curve that represents all possible combinations of goods /services in a country using the available resources.

A(n) ________ indicates increasing opportunity costs.

________ (management): organising and risk taking factor of production.

________: some income from firms and households goes to the government sector in the form of taxes.

the study of the choices that people make in overcoming the problems that arise because resources are limited, while needs and wants are unlimited

decisions as to what to produce, how to produce, and for whom, are made by the government

all production is in private hands and demand and supply are left free to set wages and prices in the economy