Economics Review

Economics Review - matches the needs of the household...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics Review Chapter 1 Summary Economies are working properly when there is sufficient economic activity to provide a growing GDP, and adequate employment and income for members of households in the economy. M acroeconomics focuses on these volume issues ; understanding how an economy determines what the volumes will be, when an economy be expected to fail to generate an acceptable volume of economic activity, and what to do about it. A healthy economy will also have markets that provide the correct incentives and information to ensure that the correct recipe of inputs is available for use by the business sector, and that the business sector produces the correct mix of goods and services that
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: matches the needs of the household sector. Microeconomics focuses on these recipe issues ; understanding how markets work in getting the recipes right, when they may not work so well, and what to do about it. Key Terms: economics Land an economy Labor models Capital The Circular Flow Model Entrepreneurial Skill the business sector Gross Domestic Product the household sector Macroeconomics physical flows Microeconomics monetary flows economic recession the standard of living inflation factors of production planned economies market economies...
View Full Document

This note was uploaded on 03/20/2008 for the course ECON 121 taught by Professor Rogerhinderliter during the Spring '07 term at Ithaca College.

Ask a homework question - tutors are online