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chap 18
Term | Definition |
---|---|
need | requirements for survival such as food clothing and water |
want | a thing we should like to have such as entertainment vacations or items that make life comfortable and enjoyable |
economics | the study of individuals and nations make choices about ways to use sources resources to fulfill their need and wants |
microeconomics | the economics behavoir and decision making by individuals and small business |
macroeconomics | economic behavior and decisions making by the government or a whole industry or society |
economics models | simplified representation of the real world that economist develop to describe how the the economy behaves and is expected to perform in the future |
economic systems | nations way of producing things in people want in need |
resource | wealth |
scarcity | not having enough resources of things you would like to have |
marginal cost | the additional or extra benefit associated with an action |
cost benefit analysis | economic models that compare the marginal cost and marginal benefit of a decison |
trade off | the alternative you face if you decide to do one thing rather then another |
opportunity cost | the cost of the next best alternative use of time ans money when choosing to do one thing rather the another |
marginal benefits | the additional or extra opportunity cost associated with an action |