Econ Mod 10 & 11 Vocab 1

What is a circular flow diagram?

• A tool for drawing perfect circles in economics

• A visual representation of the interaction between households and firms in an economy

• A map illustrating global trade routes

• A chart showing population growth over time

In a command economy, who makes economic decisions?

• Individuals in the society

• Corporations and businesses

• Government authorities

• International organizations

How is division of labor defined in economics?

• The separation of rich and poor in society

• The allocation of tasks among different workers to produce a good or service

• The distribution of resources in a market economy

• The process of breaking down a company into smaller units

What is the central focus of economics as a field of study?

• Understanding human behavior

• Analyzing the distribution of wealth

• Studying how humans make choices in conditions of scarcity

• Examining the history of economic systems

What does the term "economies of scale" refer to?

• The efficiency gained as production levels increase

• The advantages of a small-scale business

• The impact of inflation on an economy

• The influence of international trade on domestic markets

What are exports in the context of economics?

• Products sold domestically

• Goods and services made domestically and sold abroad

• Resources owned by the government

• d) Items traded within a country's borders

What does fiscal policy involve?

• Individual budgeting and financial planning

• Government spending and taxes

• Monetary transactions in global markets

• Corporate financial strategies

What is globalization in economic terms?

• The expansion of a single national market

• The decentralization of economic activities

• The trend of buying and selling crossing national borders

• The dominance of local markets over international trade

In which market are firms the sellers and households the buyers?

• Labor market

• Stock market

• Goods and services market

• Global market

How is Gross Domestic Product (GDP) defined?

• The total wealth of a nation's citizens

• The average income of households in a country

• The measure of the size of total production in an economy

• The value of all natural resources within a nation's borders