Unit 1 Part 1 Vocab

Front

The study of how people choose to use their limited resources - land, labor, capital, entrepreneurship, (money, time, etc) to satisfy unlimited wants (& needs)

Back

economics

Front

The value of a choice - relative to an alternative - the cost of the best alternative given up.

Back

opportunity cost

Front

The condition where each subsequent unit of a good or service consumed provides less satisfaction than the previous.

Back

the Law of Diminishing Marginal Utility

Front

The economy in which producers and consumers are relatively free of government intervention

Back

laissez-faire

Front

This is what is gained by adding one more unit to an activity

Back

marginal benefit

Front

something that motivates a person to take a particular course of action

Back

incentive

Front

a method of rational inquiry with six steps: (1) posing a question, (2) researching the question, (3) developing a hypothesis, (4) conducting studies and collecting data, (5) analyzing the data, and (6) evaluating the hypothesis

Back

scientific method

Front

the branch of economics that makes value judgments about the economy; its focus is on which economic policies should be implemented

Back

normative economics

Front

an arrangement that brings buyers and sellers together to do business with each other (any place physical or virtual where buyers and sellers might do business)

Back

market

Front

a visual representation of the relationship between two sets of data

Back

graph