Chapter 18; Section 1 Flashcards
Well Informed Citizen
important to make rational and reasonable economic choices
Needs
something needed for survival, food, clothes, and shelter
Wants
something we would like to have, entertainment, vacation, and enjoyable things that make life comfortable.
Economics
the study of how we make decisions in a world in which resources are limited
Economic Model
explains human economic behavior
Economic System
determine how human economic decisions will be made
Resources
things used in making goods and providing services
Scarcity
consumers make rational choices such as compare prices and make decisions based on their limited resources -> occurs when we do not have enough resources to produce all things we would like
Where?
Where do these products come from?
How?
How do they get to stores?-> deciding how to something can be produced and standards for producing
Who?
Who buys them? Who makes
Why?
Why do people buy them?
Macroeconomics
big picture; economy as a whole and decision-making by large units such as governments
Microeconomics
small picture; behavior and decision-making of small units like individuals and business
