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Definition
| the study of how society manages its scarce resources |
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| society has limited resources and therefore cannot produce all the goods and services people wish to have |
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| society is getting the maximum benefits from its scarce resources |
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| benefits are distributed fairly amoung society's members |
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| what one gives up to get receive something |
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| systematically and purposefully do the best they can to achieve their objectives, given the opportunity they have |
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| describe small incremental adjustments to an existing plan of action |
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| something (such as the prospect of a punishment or a reward) that induces a person to act |
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| the decisions of a central planner are replaced by the decisions of millions of firms and households |
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| the ability of an individual to own and exercise control over scarce resources |
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| a situation in which a market left on its own fails to allocate resources efficiently |
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| the impact of one person's actions on the wellbeing of a bystander |
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| the ability of a single economic actor (or small group of actions) to have a substantial influence on market prices |
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| the quantity of goods and services produced from each hour of a worker's time |
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| an increase in the overall level of prices in the economy |
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| fluctuations in economic activity, such as employment and production |
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