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Ch.18
Term | Definition |
---|---|
Need | Requirements for survival, such as food, clothing, and shelter. |
Want | A thing we would like to have, such as entertainment, vacations, or an item that makes life comfortable and enjoyable. |
Economics | The study how individuals and nations make choices about ways to use scarce resources to fulfill their needs and wants. |
Microeconomics | The economic 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 develop to describe how the economy behaves and is expected to perform in the future. |
Resource | WEALTH. |
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 than another. |
Marginal Cost | The additional or extra opportunity cost associated with an action. |
Marginal Benefit | The additional or extra benefit associated with an action. |
Cost-Benefit Analysis | Economic model that compares the marginal costs and marginal benefits of a decision. |
Economic System | Nation's way of producing things its people want and need. |