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8 Cards in this Set
- Front
- Back
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Scarcity |
The limited nature of society’s resources - society has limited resources and cannot produce all the goods and services people wish to have |
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Economics |
The study of how society manages its scarce resources |
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Efficiency |
Society gets the maximum benefits from its scarce resources |
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Equality |
Prosperity is distributed uniformly among society’s members |
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Opportunity cost |
Whatever must be given up to obtain some item |
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Incentive |
- something that includes a person to act - can have unintended consequences |
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Marginal Changes |
Example: You buy your first ps4, you can play as much games as you want on it. Your marginal benefit Is low for a second ps4 |
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Adam Smith’s “invisible hand” |
- households and firms interacting in markets Example: buying a cheap product in bulk to sell it on eBay for more |
