Chapter 1 Flashcards
0
Q
Guns or butter
A
A phrase that refers to the trade-offs that nations face when choosing whether to produce more or less military or consumer goods.
1
Q
Trade off
A
An alternative that we sacrifice when we make a decision.
2
Q
Opportunity cost
A
The most desirable alternative given up as the results of a decision.
3
Q
Thinking at the margin
A
Deciding whether to do or use one additional unit of some resource.
