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civics chapter 18
Term | Definition |
---|---|
need | things that are required to have like food, clothing and shelter. |
want | things we would like to have like entertainment. |
economics | the study of how we make decisions in a world in which resources are limited. |
microeconomics | the study of behavior and decision making of small units such as individuals and businesses. (little picture) |
macroeconomics | deals with economy as a whole and decision making by large units such as governments or whole industries or societies(big picture) |
economic model | is a theory that tries to explain human economic behavior. |
economics system | way of producing the things its people want and need. |
resource | things used in making goods and providing services. |
scarcity | occurs whenever we do not have enough resources to produce all the things we would like to have. |
trade-off | is the alternative you face if you decide to do one thing rather than another. |
oppportunity cost | the cost of the next best use of your time or money when you choose to do one thing rather than another. |
marginal benefit | the additional satisfaction or benefit received when one more unit. |
cost-benefit analysis | economic model that compares the marginal costs and marginal benefits of a decision. |
marginal cost | the additional cost of producing one additional unit of output. |