click below
click below
Normal Size Small Size show me how
What is Economics?
Chapter 18
Term | Definition |
---|---|
needs | Things that are required in order to live |
wants | things that you would like to have but are not necessary for survival |
economics | the study of how people seek to satisfy their needs and wants by making choices |
microeconomics | the behavior and decisions of small institutions (individuals, businesses) |
macroeconomics | deals with the economy as a whole. (government, societies, industries) |
economic model | a theory explaining economic behavior |
economic system | a way of producing things people want or need |
resources | things used in making goods or providing sercives |
scarcity | a lack of resources |
trade off | choosing one thing over another |
opportunity cost | the cost of the next best use of your time or money when you choose to do one thing rather than another |
marginal cost | the additional cost of producing one additional unit of output |
cost benefit analysis | used to decide if benefits outweigh costs |
marginal benefit | the additional benefit received when one more unit is produced |