1.6 KEY TERMS

Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.

  1. Question

    Macroeconomics
    Market failure
    Economy
    Economic growth
    Invisible hand
    Market economy
    Microeconomics
    Economics
    an economy in which decisions about production and consumption are made by individual producers and consumers.
    the branch of economics that is concerned with the overall ups and downs in the economy.
    the social science that studies the production, distribution, and consumption of goods and services.
    a phrase used by Adam Smith to refer to the way in which an individual’s pursuit of self-interest can lead, without the individual intending it, to good results for society as a whole.
    the growing ability of the economy to produce goods and services.
    a system for coordinating society’s productive activities.
    the failure of a market to be efficient. This happens when the individual pursuit of self-interest leads to bad results for society as a whole.
    the branch of economics that studies how people make decisions and how those decisions interact.
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