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Chapter 18
Term | Definition |
---|---|
Need | Requirements for survival, such as food, clothing, and shelter. |
Want | Things you would want to have. Games |
Economic | The study of how people and a country use scarce resources. |
Microeconomic | The economic behavior and decision-making by individuals and small businesses. |
Macroeconomic | Economic behavior and decision making by government or whole industries or societies. |
Economic Model | Simplified representation of the real world that economics develop to describe how the economy behaves and is expected to preform in the future. |
Economic System | A nation's way of producing things its people want and need. |
Resource | 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 alternatives 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 than another. |
Marginal Cost | The additional or extra opportunity cost associated with an action. |
Marginal Benefit | The additional or extra benefit associated with and action. |
Cost-Benefit Analysis | Economic model that compares the marginal costs and marginal benefits of a decision. |