Econ Chapter 1 Flashcards

Front

economics

Back

the study of how people choose to use their limited resources to satisfy their unlimited wants.

Front

economy

Back

a system used to manage limited resources for the production, distribution and consumption of goods and services.

Front

Microeconomics

Back

the study of the economy at the level of individuals, households, and businesses.

Front

Macroeconomics

Back

the study of the workings of the economy as a whole.

Front

scarcity

Back

the condition that results because people have limited resources but unlimited wants.

Front

tradeoff

Back

the exchange of one benefit or advantage for another that is thought to be better.

Front

scarcity-forces-tradeoffs principle

Back

the idea that limited resources force people to make choices and face tradeoffs when they choose.

Front

no-free-lunch principle

Back

the idea that every choice involves tradeoffs; a restatement of the scarcity-forces-tradeoffs principal.

Front

costs

Back

what is spent in money, effort, or other sacrifices to get something.

Front

benefits

Back

what is gained from something in terms of money, time, experience, or other improvements.