A situation where resources are limited but wants are unlimited., Scarcity, All the different options you give up when you make a choice., Trade-off, The next best alternative you give up when making a decision., Opportunity Cost, Factors that motivate or influence people’s behavior., Incentives, Making decisions by comparing the extra (additional) costs and benefits of one more unit., Marginal Thinking, Comparing the total costs and total benefits of a decision., Cost-Benefit Analysis, Making choices based on what will provide the greatest benefit with the least cost., Rational Decision Making, The amount of output produced per worker or per unit of input., Productivity, Focusing on a specific task or job to become more efficient., Specialization, The exchange of goods or services between people or groups., Trade, Resources that are not available in unlimited amounts., Limited Resources, People’s desires for goods and services that never fully run out., Unlimited Wants, The skills, education, and training that people have., Human Capital, Using resources in a way that produces the most output with the least waste., Efficiency, The process of choosing between different options., Decision Making Process, The act of selecting one option from a set of alternatives., Choice, Something that is gained or enjoyed from a decision., Benefit, Something that is given up in order to get something else, Cost, The additional benefit gained from one more unit of something., Marginal Benefit, The additional cost of one more unit of something., Marginal Cost, A reward that encourages a certain behavior., Positive Incentive, A penalty or punishment that discourages a certain behavior., Negative Incentive, The ability to produce more of a good or service than another producer using the same amount of resources., Absolute Advantage, The ability to produce a good or service at a lower opportunity cost than another producer., Comparative Advantage.

Econ Unit One

by
Print
Embed

Leaderboard

Visual style

Options

Switch template

)
Continue editing: ?