Search results
Study with Quizlet and memorize flashcards containing terms like Adam Smith, Wealth of Nations, Economics and more.
guides and oversees the process by which separate resources are turned into goods and services. compromises all machines, implements, and buildings used to produce goods and services either directly or indirectly.
Chapter 1. the study of the decisions involved in producing, distributing, and consuming goods and services. A situation in which resources are limited and can be used in different ways, so we must sacrifice one thing for another. The resources used to produce goods and services, there are four.
Economic activity is shown by the upward and downward movements of the curve. A period where there is a general increase in economic activity is known as an upswing. A period of general decline in economic activity is called a downswing.
In the short run, whether an economy is in a recession or on the upswing can affect trade imbalances. A recession tends to make a trade deficit smaller, or a trade surplus larger, while a period of strong economic growth tends to make a trade deficit larger, or a trade surplus smaller.
An economy with reliable roads and electricity will be able to produce more. However, it is hard to quantify how much government investment in physical capital will benefit the economy, because government responds to political as well as economic incentives.
In this section, we will explore the outcomes, both anticipated and otherwise, when government does intervene in a market either to prevent the price of some good or service from rising “too high” or to prevent the price of some good or service from falling “too low”.
