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| the decision by an indiidual of what to do, which necessarily involves a decision of what not to do |
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| anything that can be used to produce something else |
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| te quantity of resouces isn't large enough to satisfy all productive uses |
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| the real cost of an item; what you must give up in order to have it |
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| what you must make when you compare the costs with the benefits of doing something |
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| decisions about whether to do a bit more or a bit less of an activity |
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| the study of making decisions at the margin |
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| anything that offers rewards to people who change their behavior |
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| a featre of most economic situations. The results of this interaction of my choices ersus your choices and vice versa is are often quite different from what the individuals intend |
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| providing goods and services to others and receiving goods and services in return |
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| people can get more of what they want through trade than they could if they tried to be self-sufficient |
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| each person specializes in the task that he or she is good at performing; leads to gains from trade |
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| an economic situation is in equilibrium when no individual would be better off doing something different |
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| an economy is efficient if it takes all opportunities to make some people better off without making other people worse off |
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| means that everyone gets his or her fair share. Since people can disagree about what is "fair," equity isn't as well-defined a concept as efficiency |
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