Scarcity
out inability to satisfy all our wants
Choices
when we face scarcity we must make these
Incentive
a reward that encourages an action or a penalty that discourages an action
Economics
the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices
Microeconomics
the study of choices that individuals and businesses make, the way those choices interact in markets and the influence of governments
Macroeconomics
the study of the performance of the national and global economies
Goods and services
the objects that people value and produce to satisfy human wants
Factors of production
goods and services are produced by using productive resources that economists
Which of the following can start an inflation
an increase in aggregate demand and a decrease in aggregate supply
Inflation can be started by
a decrease in aggregate supply or an increase in aggregate demand
Demand pull inflation starts with
an increase in aggregate demand
demand pull inflation is an inflation that results from
an initial increase in aggregate demand
demand pull inflation starts with a shift of the
AD curve rightward
Increases in the quantity of money can start a --- inflation and an increase in government expenditure can start a ---inflation
demand pull, demand pull
Which of the following is a change that would not start a demand pull inflation
an increase in labor productivity
Which of the following could not start a demand pull inflation
increases in oil prices
Suppose
...