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Definition
| The process of weighing cost/benefits, utility, trade-offs |
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Definition
| the negative aspects of a particular trade-off (choice) |
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Term
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Definition
| the positive aspects of a particular trade-off (choice) |
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Term
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Definition
| satisfaction that results from a given choice, can diminish over time called diminishing utility |
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Term
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Definition
| the value of your next best option, what else could I do besides what I am doing? Can be shown on a PPF by moving from one point to another |
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Term
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Definition
| the earnings on a decision. Could be money, could be time saved, etc |
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Term
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Definition
| the study of what people do with what they have. The study of scarcity. The study of unlimited wants v limited resources |
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Term
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Definition
| the main idea that forces us to make decisions. Describes resources that are lacking and in demand |
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Term
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Definition
| an economic system where the three basic questions are answered by individuals. Incentives are key. |
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Term
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Definition
| an economic system where the government answers the basic questions of economics. |
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Term
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Definition
| A combination of command and market economics, where the government has some level of influence over the economy |
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Term
| traditional economic system |
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Definition
| an economic system where the three basic questions are answered by the traditions and customs of the group |
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Term
| PPF/C (production possibilities frontier or curve |
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Definition
| a graphic representation of the potential of a given economy, business, or individual. Has only two possible options and also represents efficiency |
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Term
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Definition
| resource that occurs without human intervention |
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Term
| factors of production or resources |
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Definition
| there are four main categories of this. These are the things we use to produce our goods and services |
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Term
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Definition
the side of the circular flow where homes exchange money for stuff.
Homes=buyers
Businesses=sellers |
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Term
| circular flow model of economics |
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Definition
| a simplified version of the flow of money through the economy. |
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Term
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Definition
the side of the circular flow where resources are exchanged for money
homes=sellers
firms=buyers |
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Term
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Definition
| a resource category that includes the human made tools that are used to produce goods/services |
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Term
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Definition
| a resource category that includes the things that people do or actions that are taken to produce a good or service |
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Term
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Definition
| the resource category that involves risk-taking and combining the three main categories of resources to invent or innovate |
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Term
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Definition
| any arrangement of buyers AND sellers where goods and services are exchanged, usually for money |
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Term
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Definition
| an economic model that shows the flow of money through various markets. Resource market is where productive resources are exchanged for money in the form of wages and salaries. Product market is where money payments are exchanged for goods and services |
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Term
| Central Planning Committee |
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Definition
| the group that is in charge of answering the basic questions of economics in a command economic system |
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Term
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Definition
| the satisfaction gained from every additional (marginal) unit of something that we consume |
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Term
| diminishing marginal utility |
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Definition
| the idea that our utility for something decreases as we consumer more and more of that "thing" |
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