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Definition
| The study of allocating scarce resources to competing ends. |
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Term
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Definition
| The study of individual choices under scarcity and the implications of these choices for the behaviour of prices and quantities in these individual markets. |
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| The study of the performance of national economies and the policies governments use to try and improve that performance. |
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| We have limited resources but unlimited desires, and wanting more of one thing may mean having less of another. |
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Definition
| A person will complete an action if and only if the extra benefits outweigh the extra costs. |
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| Principle of Relevant Costs |
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Definition
| In considering whether to produce more of a good, what matters most is the cost of one additional unit (marginal cost). |
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| Someone with well-defined goals who tires to fulfill them as best as he or she can. |
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Definition
| The benefit of an action minus its costs. |
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Definition
| The value of the next-best alternative that must be forgone in order to partake in an action. |
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| A cost beyond recovery the moment a decision is made. |
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Definition
| The total benefit of an activity divided by the total units of the activity. |
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Definition
| The total cost of an activity divided by the total units of the activity. |
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Term
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Definition
| The extra benefit from undertaking one more unit of an activity. |
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Definition
| The extra cost from undertaking one more unit of an activity. |
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Definition
| Economic analysis offering cause and effect explanations of economic relationships. |
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| Welfare (Normative) Economics |
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Definition
| Economic statements reflecting subjective judgement. |
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Term
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Definition
| When two variables more together but are otherwise unrelated. |
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Term
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Definition
| Just because something is true in part, means it is true for a whole. |
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