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FINAL EXAM REVIEW -1

Covers Ch 1 thru 4, 23, 24.
Horizontales
study of economy-wide inflation, unemployment, and economic growth
goods and services that are produced abroad and sold domestically
percentage change in price index from the preceding period
quantity supplied equals quantity demanded
measure of overall cost of goods and services bought by a typical consumer
market value of all final goods and services produced within a country in given time period
production of goods and services valued at current prices
production of goods and services valued at constant prices
Comparative advantage is the ability to produce a good at a _____ opportunity cost than another producer
study of how society manages its scarce resources
Verticales
Has many buyers and sellers trading identical products
study of how households and firms make decisions
measure of the cost of a basket of goods and services bought by firms
spending on business capital, residential capital, and inventories
has strong influence on market prices
production possibilities frontier is a _____ showing combinations of output that the economy can produce
graph of relationship between price of a good and quantity supplied
goods and services that are produced domestically and sold abroad
Circular flow diagram is a visual model of the economy showing how dollars flow through _______
increase in overall level of prices in the economy
Absolute advantage is ability to produce goods using ____ inputs than another producer