Module 2: The Bigger Picture-National and Global Economics

In this module, you will look at the “big picture.”   Countries and governments deal with the reality that there are not enough resources for the wants and needs of a country’s citizens, just like you dflags imageo for your own wants and needs.  How do all the economic decisions made by people in households all over the country affect the entire world?  Studying the bigger picture, or macroeconomics, helps government officials create better policies to achieve a higher standard of living for countries.  When studying the bigger picture, economists consider some of the following:

  • What makes a country rich or poor?
  • What determines the value of a country's currency?
  • Why do we depend on other countries for goods and services?
  • How can we avoid a recession?

Pre-Assessment:

IconUsing the Internet, find three definitions of macroeconomics using three different websites.  Once you have read all three definitions, compose your own definition of macroeconomics and post it to the discussions area.

Return to the topic several times over the next few days to read your coursemates’ definitions. Reply to at least two of them, being sure to ask questions, and encourage further conversation.

Key Vocabulary:

To view the definitions for these key vocabulary terms, visit the course glossary.

Absolute Advantage Depreciation Inflation Product Market
Appreciation Dividends Innovation Productivity
Appropriations Economies of Scale Input Profit
Antitrust Legislation Embargo Intermediate Goods Public Corporations
Balance of Trade Eminent Domain Labor Productivity Public Disclosure Laws
Bonds Environmental Protection Agency (EPA) Limited Liability Company (LLC) Quota
Budget Exchange Rate Limited Liability Partnership (LLP) Recession
Budget Deficit Exports Limited Partner Revenue
Budget Surplus Factor Market Market Economy S Corporation
Business Cycle Federal Communications Commission (FCC) Merger Securities and Exchange Commission (SEC)
Capital Goods Federal Reserve System Mixed Economy Sole Proprietorship
Capital Productivity Federal Trade Commission (FTC) Monetary Policy Specialization
Cartel Fiscal Policy Monopolistic Competition Standard of Living
Charter Fiscal Year Monopoly Stockholders
Circular Flow of Economic Activity Fixed Costs National Debt Structural Unemployment
Collusion Food and Drug Administration (FDA) National Monopoly Tariff
Command Economy Foreign Exchange Market Non-Profit Organizations Tax Revenues
Comparative Advantge Franchise Occupational Safety and Hazards Administration (OSHA) Trade Agreement
Competition Frictional Unemployment Oligopoly Trade Barrier
Consumer Price Index (CPI) General Agreement on Tariffs and Trade (GATT) Output Trade Deficit
Consumer Product Safety Commission General Partner Partnership Trade Surplus
Consumer Sovereignty Globalization Patent Laws Traditional Economy
Consumer Surplus Government Regulation Perfect Competition Unlimited Liability
Contracts Gross Domestic Product (GDP) Personal Property Rights U.S. Bureau of Weights and Measures
Cooperative Households Private Corporations U.S. Department of Agriculture (USDA)
Corporation Human Capital Producer Surplus Variable Costs
Cyclical Unemployment Imports Product Differentiation World Trade Organization