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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 of how individuals and nations make choices about ways to use scarce resources to full fill their needs and wants |
Microeconomics | The economic behavior and decision-making by individuals and small business |
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 perform in the future |
Economic System | Nations way of producing things its people want and need |
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 |