Studied by 6 peoplescarcity
the limited nature of society's resources, given society's unlimited wants and needs
economics
the study of how individuals and societies satisfy their unlimited wants with limited resources
macroeconomics
the study of the overall aspects and workings of an economy
incentives
factors that motivate a person to act or exert effort
opportunity cost
the highest-valued alternative that must be sacrificed in order to get something else
economic thinking
requires a purposeful evaluation of the available opportunities to make the best decision possible
marginal thinking
requires decision-makers to evaluate whether the benefit of one more unit of something is greater than its cost
markets
brings buyers and sellers together to exchange goods and services
circular flow diagram
shows how goods, services, and resources flow through the economy
trade
the voluntary exchange of goods and services between two or more parties
comparative advantage
the situation where an individual, business, or country can produce at a lower opportunity cost than a competitor can
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