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16 Cards in this Set
- Front
- Back
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Scarcity
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the limited nature of a society's resources
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Economics
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the study of how a society manages it's scarce resources
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Efficiency
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the property of a society getting the most it can from it's scarce resources
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Equity
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the property of distributing economic prosperity fairly among members of society
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Opportunity Cost
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whatever must be given up to obtain some item
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Rational People
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people who systematically and purposefully do the best they can to do to achieve their objectives
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Marginal Changes
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small incremental adjustments to a plan of action
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Incentive
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something that induces a person to act
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Market Economy
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an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
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Property Rights
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the ability of an individual to own and exercise control over scarce resources
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Market Failure
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a situation in which a market left on its own fails to allocate resources efficiently
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Externality
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the impact of one person's actions on the well-being of a bystander
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Market Power
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the ability of a single economic actor to have a substantial influence on market prices
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Productivity
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the quantity go goods and services produced from each hour of a worker's time
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Inflation
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an increase in the overall level of prices in the economy
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Business Cycle
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fluctuations in economic activity, such as employment and production
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