Objectives:

• Explain the meaning of relevant economic terms
• Compare and contrast microeconomics and macroeconomics
• Describe in detail the economic cycle

1. Write a sentence or two defining the following terms in your own words. Give examples of each.

• Allocate
• Absolute Advantage
• Capital
• Cyclical
• Demand Curve
• Discouraged Workers
• Planned System
• Public Goods
• Recession
• Dishonest workers
• Elastic Demand
• Entrepreneurship
• Federal Reserve
• Frictional
• Resources
• Scarcity
• Substitute Goods
• Monopoly
• Oligopoly
• Induced
• Inelastic Demand
• Inflation
• Law of Comparative Advantage
• Law of Diminishing Demand
• Market Equilibrium Point
• Market System

2. Compare and contrast Macroeconomics and Microeconomics. Give specific details and examples.

3. Describe the economic cycle. Give specific details and examples.