Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
15 Cards in this Set
- Front
- Back
|
Economics |
The study of how individuals and nations make choices |
|
|
Needs |
requirements for survival such as food clothing and shelter |
|
|
Wants |
things we would like to have such as entertainment and vacation |
|
|
Scarcity |
Not having enough resources to produce all of the things we would like to have |
|
|
Economic model |
simplified representatives of the real world |
|
|
Trade-off |
the alternative you face if you decide to do one thing rather than another |
|
|
Opportunity cost |
the cost of the next best use of time and money |
|
|
marginal cost |
the additional or extra opportunity cost associated with an action |
|
|
marginal benefit |
the additional or extra benefit associated with an action |
|
|
Cost-benefit analysis |
economic model that compares the marginal costs and marginal benefits |
|
|
market economy |
system in which individuals own the factors of production |
|
|
capitalism |
A system in which private citizens own most if not all |
|
|
free enterprise |
economic system in which individuals and businesses are allowed to complete for profit |
|
|
incentive |
reward offered to try to persuade people to take certain economic actions |
|
|
rational choice |
choosing alternative that has the greatest value |
