Fundamentals of Economics Concepts

Front

What is economics?

Back

The study of people and their choices

Front

What is opportunity cost?

Back

The value of what you give up when you chose something else

Front

What is scarcity?

Back

Not enough of everything because of resources

Front

What is incentive?

Back

Something that motivates people to take action or make decisions

Front

What is a loophole?

Back

a gap in a law that lets people avoid doing what's required

Front

What is intrinsic motivation?

Back

doing something because you enjoy it, not for a reward

Front

What is extrinsic motivation?

Back

doing something to earn a reward or avoid punishment

Front

What is specialization?

Back

focusing on one thing to become good at it

Front

What is comparative advantage?

Back

the ability to produce something at a lower cost, focus on that thing and trade

Front

What is macroeconomics?

Back

the study of the big picture of the economy (unemployment, inflation)