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Definition
| The study of how people deal with scarcity |
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| The situation in which the quantity of resoucres is insufcient |
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| A selection among alternative goods, services, or actions |
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| Exchange of goods and services between people |
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| An arrangment by which econ exchanges between people take place |
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| The value of the next best forgone alternative that was not chosen because something else was choosen |
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| Improvements in income, production, or satisfaction owing to the exchange of goods or services |
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| A concentration of production effort on a single specific task |
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| The division of production into various parts in which different groups of workers specialize |
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| A situation in which a person or group can produce one good at a lower opp cost than another person or group |
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Definition
| Alternative combinations of production of various goods that are possible, given the econ resources |
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| Increasing Oppertunity Cost |
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Definition
| Situation in which producing more of one good requires giving up an increase amount of production of another good |
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| Production Possibilites Curve |
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Definition
| A curve showing the maximum combo of production of two goods that are possible, given the econ resources |
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Definition
| An econ characterized by freely determined prices and the free exchange of goods and serives in markets |
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Definition
| An econ in which the gov determines prices and production, also called a centrally planned econ |
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Definition
| Prices that are determined by the indivduals and firms interaction in markets |
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Definition
| Rights over the use, sale, and proceeds from a good or resource |
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Definition
| A device that motivates people to take action usually so as to increase economic efficiency |
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Definition
| Any Situations in which the market docs not lead to an efficient econ outcome and in which there is a potential role for gov |
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Term
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Definition
| The situation where the gov fails to improve on the market or even makes things worse |
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