Chapter 1: An Introduction to the Economic Way of Thinking

________ occurs when we have fewer resources than we have uses for those resources . '

________ help us to understand and analyse choices and their implications.

________ weigh the costs and benefits associated with any choice in order to maximize the value of some objective.

________ with the choices we make as a society, such as how much tax to pay and how many progran1s the government should sponsor.

________ is a synonym tor satisfaction or happiness and describes the benefit individuals get from their choices.

________ is a Latin term that means "all other things remaining constant "or "all else equal ..

By convention, the term "curve "is used to describe the connected ________, regardless of whether the curve is a straight line or not.

________ is the difference between the earnings that a firm receives from selling its good or service and the costs incurred to produce the good or service.

________ of economic choices often involves relaxing the ceteris paribus assumption in a series of steps.

________ with the choices individuals, households, or businesses make, the decision for both spouses in a family to have paid employment, and the decisions firms make when hiring workers.

________ are visual representations of relationships between two or more variables.

________ are irrelevant when making decisions at the margin.

________ forces us to allocate our scarce resources among the many uses for them, and we have to make choices or trade- offs between these various uses.

________ is the benefit that firms get from their choices.

as more and more of an activity is done, the marginal benefits derived from the activity lend to diminish

as more and more of an activity is done, the marginal costs of the activity tend to increase