Macro Economics Vocabulary

The value of the next best alternative that is given up

• Opportunity Cause and Effect

• Opportunity Cost

• Scarcity

• All the above

—Measure of value that allows producers and consumers to determine worth.

• Money

• Barter

• Trade

• Utility

Price in economics refers to

• direct exchange of goods not using money

• satisfaction from consuming a product

• the amount of money consumers pay for a product

• the resources it takes to produce a product

What does utility in economics refer to

• giving up one product for another without sacrificing resources

• the study of making choices to satisfy their unlimited wants and needs

• trading one set of goods for another not using money

• advantage of fulfillment a person receives from consuming a good or service

Little Jon makes it a priority to attend every school day his senior year in order to pass his classes. In economics, he is responding to...

• mixed economies

• Traditional Costs

• Incentives

• Barter system

According to Adam Smith, everyone makes decisions that are best for themselves

• MACRO Economics

• Opportunity Costs

• Invisible Tradeoff Theory

• Invisible Hand Theory

A local yard sale would be considered which economic system?

• Mixed Economies

• Market Economies

• traditional Economies

• command Economies

The total market value of all final goods and services produced within a country in a given period is known as

• A) Gross Domestic Product (GDP)

• B) Net National Product (NNP)

• C) Gross National Product (GNP)

• D) National Income

The economic term for a situation where the quantity demanded exceeds the quantity supplied is

• A) Surplus

• B) Equilibrium

• C) Shortage

• D) Inflation

Which of the following is a tool used by central banks to control the money supply?

• A) Fiscal Policy

• B) Monetary Policy

• C) Trade Policy

• D) Exchange Rate Policy