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15 Cards in this Set

  • Front
  • Back
is the study of how human beings coordinate their wants and desires, given the decision making mechanisms, social customs, and political realities of the society.
the goods available are too few to satisfy individuals' desires
Marginal Cost
the additional cost to you over and above the costs you have already incurred
Sunk Costs
costs that have already been incurred and cannot be recovered
Marginal Benefit
the additional benefit above what you've already derived
Opportunity Cost
the benefit forgone by undertaking that activity
the value of the next best alternative
Economic Forces
the necessart reactions to scarcity
Invisible Hand
the price mechanism, the rise and fall of prices that guides our actions in a market
Economic Model
a framework that places the generalized insights of the theory in a more specific contextual setting
Economic Principle
a commonly held economic insight stated as a law or general assumption
achieving a goal as cheaply as possible
Invisible Hand Theory
a market economy, through the price mechansim, will tend to allocate resources efficiently
- the study of individual choice, and how that choice is influenced by economic forces
- the study of the economy
Positive Economics
the study of what is, and how the economy works
Negative Economics
the study of what the goald of the economy should be