| A | B |
|---|
| macroeconomics | the study of the behavior and decision making of entire economies |
| microeconomics | the study of the economic behavior and decision making of small units, such as individuals, families, and businesses |
| gross domestic product (GDP) | the total value of all final goods and services produced in a particular economy |
| business cycle | a period of macroeconomic expansion followed by a period of contraction |
| work ethic | a commitment to the value of work and purposeful activity |
| technology | the process used to produce a good or service |
| public good | a shared good or service that the government provides |
| public sector | the part of the economy that involves the transactions of the government |
| private sector | the part of the economy that involves the transactions of individuals and businesses |
| free rider | someone who would not choose to pay for a certain good or service, but would get the benefits if it were a public good |
| market failure | a situation in which the market does not distribute resources efficiently |
| externality | an economic side effect of a good or a service that generates benefits or costs to someone other than the person deciding how much to produce or consume |
