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Chapter 18
Term | Definition |
---|---|
Needs | requirements for survival,such as food , clothing and shelter |
wants | a thing we would like to have, such as entertainment, vacation, or an item that makes life comfortable and enjoyable. |
economics | the study of how individuals and nations make choices about ways to use scarce resources to fulfill their needs and wants. |
microeconomics | the economics behavior and decision-making by individuals and small businesses. |
macroeconomics | economic behavior and decision-making by government or whole industries or societies |
economic model | simplified representation of the real world that economists develop to describe how the economy behaves and is expected to preform in the future. |
economic system | nations way of producing things its people want and need. |
resources | the money, people , and materials available to accomplish a community's goals |
scarcity | not having enough resources to produce all of the things we would like to have. |
trade-off | the alternative you face if you decide to do one thing rather than another. |
opportunity cost | the cost of the next best alternative use of time and money when choosing to do one thing rather then another. |
marginal cost | the additional or extra opportunity cost associated with an action |
marginal benefits | the additional or extra benefit associated with an action |
cost-benefits analysis | economic model that compares the marginal costs and marginal benefits of a decision. |