Chapter 1 Flashcards
1
Q
Rewards and penalties that motivate behavior
A
Incentives
2
Q
When there is not enough of a specific resource to satisfy all of our wants
A
Scarcity
3
Q
How to arrange our scarce resources to satisfy as many of our wants as possible
A
Great Economic Problem
4
Q
The value of possibilities lost when a choice is made
A
Opportunity cost
5
Q
An increase in the general or average level of prices
A
Inflation
