economics
the study of how people choose to utilize scarce resources.
scarcity
a stuation that exists when there are not enough resources to meet human wants
Microeconomics
the study of the behavior of individual units of the economy
Macroeconomics
the study of the behavior of the economy as a whole and involves topics such as inflation, unemployment, aggregate demand, and aggregate supply
opportunity cost
the value of the best alternative when u make a decisiom
Trade-off
the alternative you give up when you make an economic choice
cost-benefit analysis
when you examine the costs and benefits of a choice as an aid to decision making
marginal cost
The cost of using one more unit of a good or service
marginal benefit
the satisfaction (utility) recieved from using one more unit of a good or service
consumer
A person who purchases goods and services for personal use
Producer
a person who makes goods or provides services
goods
physical objects that can be purchased
services
work that one person does for another for payment
factors of production
the economic resources needed to produce goods and services
Entrepreneurship
the combination of vision, skill, ingenuity, and willingness to take risks that is needed to create and run new businesses
Labor (Human Resources)
all the human time, effort, and talent the go into the making of products
Land (Natural Resources)
includes all types of natural resources found on or under the ground that are used to produce goods and services
captial
property used to produce other goods and services
production possibilities curve
an economic model to illustrate the impact of SCARCITY on an economy by showing the maximum number of goods or services that can be produced using limited resources.
Efficiency
the condition in which economic resources are being used to produce the maximum amount of goods and services
Underutilization
the condition in which economic resources are not being used to their full potential