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 d o 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:
Using 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 |
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