Chapter 1 Vocabulary Name: Fill in the parentheses with the letter of the term being described. a. Goods and b. Underground c Gross Domestic d. Services Market Economy Product (GDP) e. Division of Labor f. Macroeconomics g. Monetary Policy h. i. Command Economy j. Fiscal Policy k. Economies of Scale m. Labor Market n. Scarcity o. Theory q. Microeconomics r. Imports s. Traditional economy 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Circular Flow Diagram Globalization l. Exports p. Market t. Market Economy ( ) Economic decisions are made by individual buyers and sellers. ( )The use of government taxation and expenditure policies for the purpose of achieving macroeconomic goals. ( ) Economic decisions are made by central planners, as the Communists did. ( )The value of the final goods and services produced in a country in a calendar year ( )As the level of production increases, the average cost of producing each unit will decrease. ( )Economic branch that looks at the economy as a whole. ( )The expanding cultural, political and economic connections between people around the world. ( )Where buyers and sellers come together to exchange goods and services. ( )Economic branch that looks at economics from the buyer and seller level. ( )A good or service made in the US, but sold in another country. ( )Markets where buyers and sellers make transactions without government approval. ( )Using money supply and interest rates to manage the economy. ( )Less-developed system where economic decisions are made by traditional systems. ( )Markets where businesses provide output for household consumption, like a WalMart ( ) A good or service bought in the US but produced in another country. ( ) Markets where households provide labor resources to businesses. ( )A simplified representation of how two or more variables interact with each other. ( ) Shows the flow of resources from households to businesses through resource markets and the flow of money from households to businesses through output markets. ( )production is divided into a number of tasks that are performed by different workers ( )Not enough available in nature to fill all possible uses for it.