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15 Cards in this Set
- Front
- Back
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Individual Choice
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Everyone has to make choices about what to do and what not to do. if it doesnt involve choice, it's not economics.
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Resources
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Anything that can be used to produce something else.
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Why should choices be made?
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The reason choices should be made is that resources are scarce.
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Scarce
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Not enough resources for the society.
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Opportunity Cost
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The true cost of anything is what you must give up to get it.
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Trade-off
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comparing the costs & benefits of doing something.
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Marginal decisions
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a decision made at the margin of an activity to do a bit more or a bit less of an activity.
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Incentive
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anything that offers rewards to people to change their behavior.
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Interaction
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MY CHOICE affects YOUR CHOICE. &vice versa.
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Trade
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Individuals provide goods & services to others and receive goods and services in return.
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Gains from trade
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People get more of what they want through TRADE and dividing tasks rather than by them self.
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specialization
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people specializing in the task they are good at performing.
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equilibrium
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an economic situation, an individual will be no better off doing something different.
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efficient
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description of a market or economy that takes all opportunities to make some people better off without making other people worse off.
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equity
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fairness; everyone gets their fair share.
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