Economic Key Terms Flashcards
Economics
The study of choice
Scarcity
There simply aren’t enough goods or resources in the world to satisfy all our needs and wants
Resources
Anything used to produce a good or service
Good
Items that satisfy wants and/or provide utility (does a task) physical & Non-Physical
Services
The act of supplying a want or a need
Incentives
Anything that motivated a person to do something
Trade
In Econ: refers to the buying and selling of goods and services
Trade offs
Describe what is sacrificed to get something else
Margin
refers to “one more”
Marginal Costs (MC)
What is given up by adding/producing one more of something
Marginal Benefits
What is gained by adding producing one more of something
Marginal Benefits
What is gained by adding producing one more of something
Opportunity cost
The loss of potential gain from other alternatives when one alternative is chosen
