Econ Unit 1: Week 1

Study of how an overall economy behaves.

• Microeconomics

• Cost-Benefit Analysis

• Macroeconomics

• Scarcity

The gap between limited resources and theoretically unlimited wants.

• Opportunity Cost

• Scarcity

• Explicit Cost

• Negative Incentives

Any situation where making one choice means losing something else

• Positive Incentives

• Explicit Cost

• Negative Incentives

• Trade-offs

Study of how individuals and companies make decisions.

• Microeconomics

• Cost-Benefit Analysis

• Macroeconomics

• Scarcity

The process used to measure the benefits of making a decision.

• Economics

• Cost-Benefit Analysis

• Positive Incentives

• Scarcity

What you actually pay for something.

• Explicit Cost

• Postitive Incentives

• Implicit Cost

• Negative Incentives

Punish people with money or a disadvantage for making certain choices and/or behaving a certain way.

• Explicit Cost

• Positive Incentives

• Implicit Cost

• Negative Incentives

Study of how individuals and societies make choices on how to use scarce resources to meet its wants and needs.

• Opportunity Cost

• Economics

• Cost-Benefit Analysis

• Trade-offs

The forgone benefit of the next best alternative when you use up your resources.

• Explicit Cost

• Cost-Benefit Analysis

• Opportunity Cost

• Scarcity

Reward people with money or some type of advantage for making certain choices and/or behaving a certain way.

• Explicit Cost

• Positive Incentives

• Implicit Cost

• Negative Incentives