scarcity
the condition in which our wants are greater than our resources
opportunity cost
the most highly valued alternative lost when a choice is made
economics
the study of the choices people make to satisfy wants
want
something people desire
resource
anything that is used to produce goods or services
rationing device
means for deciding who gets what
production possibilities frontier
a graphic representation of all combinations of two goods that can be produced
incentive
something that encourages or motivates a person to take action
microeconomics
The branch of economics that deals with human behavior and choices as they relate to relatively small units- an individual, a business firm, or a single market.
macroeconomics
The branch of economics that deals with human behavior and choices as they relate to the entire economy
theory
An explanation of how something works, designed to answer a question for which there is no obvious answer.
tangible
able to be felt by touch
intangible
Not able to be felt by touch. for example, an economics lecture is intangible.
goods
Anything that satisfies a person's want or brings satisfaction; also, tangible products.
utility
The quality of bringing satisfaction or happiness
disutility
The quality of bringing dissatisfaction or unhappiness
land
All the natural resources found in nature.
labor
the physical and mental talents that people contribute to the production of goods and services
capital
Produce goods that can be used as resources for further production. such things as factories, machines, and farm tractors are capital.
entrpreneurship
The special talent that some people have for searching out and taking advantage of new business opportunities and for developing new products and new ways of doing things.