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16 Cards in this Set
- Front
- Back
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Scarcity
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Society has limited resources and therefore cannot produce all the good and services people wish to have.
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Economics
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Study of how society manages its scarce resouces
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Efficiency
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The property of society getting the most it can from its scarce resouces
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Equity
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The property of distributing economic prosperity fairly among the 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 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 good and services.
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Property rights
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The ability of an individual to own and exercise control over scarce resouces.
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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 persons action 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 influenceon market prices.
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Productivity
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the quantity of goods and services produced from each hour of a workers time
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Inflations
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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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fluctuatins in economic activity, such as employment and production
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