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

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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
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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...
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