Term
|
Definition
| the study of the choices that individuals make given the presence of scarcity |
|
|
Term
|
Definition
| limited resources but unlimited wants |
|
|
Term
|
Definition
| economic goods and services |
|
|
Term
|
Definition
| the institutional structure through which individuals in a society coordinate their diverse wants. |
|
|
Term
|
Definition
1.what to produce
2.how to produce it
3. what and how much to produce it. |
|
|
Term
|
Definition
| making decisions on the basis of costs and benefits |
|
|
Term
|
Definition
| getting max benefit at min cost |
|
|
Term
|
Definition
| economic thinking is marginal thinking |
|
|
Term
| the economic decision rule |
|
Definition
| if the marginal benefit of an action excedes the marginal cost, do it. If mc>mb, don't do it |
|
|
Term
|
Definition
| the highest valued benefit while sacrificing something in result |
|
|
Term
| forces influencing economic outcomes |
|
Definition
scarcity
market forces(ration goods and services by the price level)
too much of a good
not enough of a good |
|
|
Term
|
Definition
guide economics forces to coordinate actions and allocate scarce resources.
it is the price mechanism |
|
|
Term
|
Definition
| generalizations about the working of the abstract economy |
|
|
Term
|
Definition
| can be proven or disproven |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
