Econ Review

A blank is what an individual must make when faced with two or more alternative uses of a resource.

• Market Economy

• Production

• Choice

An economic system in which supply, demand, and the price system help people make decisions and allocate resources.

• Market Economy

• Choice

• Production

Means of creating goods and services using productive resources (natural, capital, human, and entrepreneurship). This can range from a single craftsperson producing a good from beginning to end to mass production and the assembly line.

• Choice

• Production

• Market Economy

The way in which a nation's resources, goods and services are allocated

• Services

• Goods

• Distribution

• Inflation

objects that can satisfy people's wants.

• Distribution

• Goods

• Services

• Inflation

Actions that can satisfy people's wants.

• Distribution

• Goods

• Services

• Inflation

an increase in most prices; deflation is a decrease in most prices.

• Distribution

• Goods

• Services

• Inflation

exists when people who are actively looking for work do not have jobs.

• Unemployment

• Business Cycle

• Monetary Policy

• Fiscal policy

systematic changes in real GDP marked by alternating periods of expansion and contraction.

• Unemployment

• Business Cycle

• Monetary Policy

• Fiscal Policy

consists of actions initiated by a nation's central bank that affect the amount of money available in the economy and its cost (interest rates).

• Unemployment

• Business Cycle

• Monetary Policy

• Fiscal Policy