An economy where economic decisions are passed down from government authority and where the government owns the resources

The way in which different workers divide required tasks to produce a good or service

The study of how humans make choices under conditions of scarcity

When the average cost of producing each individual unit declines as total output increases

Products (goods and services) made domestically and sold abroad

Economic policies that involve government spending and taxes

The trend in which buying and selling in markets have increasingly crossed national borders

A market in which firms are sellers of what they produce and households are buyers

Measure of the size of total production in an economy

Products (goods and services) made abroad and then sold domestically

The market in which households sell their labor as workers to business firms or other employers

The branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance

Interaction between potential buyers and sellers; a combination of demand and supply

An economy where economic decisions are decentralized, private individuals own resources, and businesses supply goods and services based on demand

The branch of economics that focuses on actions of particular agents within the economy, like households, workers, and business firms

A policy that involves altering the level of interest rates, the availability of credit in the economy, and the extent of borrowing

System where private individuals or groups of private individuals own and operate the means of production (resources and businesses)

When human wants for goods and services exceed the available supply

When workers or firms focus on particular tasks for which they are well-suited within the overall production process

A representation of an object or situation that is simplified while including enough of the key features to help us understand the object or situation

Typically an agricultural economy where things are done the same as they have always been done

A market where the buyers and sellers make transactions in violation of one or more

A term commonly used by economists more than the word, "theory"