Econ Basic
Econ
Terms
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- market economy
- an economy in which the economic questions are decided mostly by individuals in the marketplace
- scarcity
- the condition that occurs because people's wants and needs are unlimited, while the resources needed to produce goods and services to meet these wants and needs are limited
- macroeconomics
- that part of economics that examines the behavior of the whole economy
- economic incentive
- the increase in personal satisfaction that may result from some economic activity
- unlimited wants and needs
- the human characteristic of never having all wants and needs satisfied
- opportunity benefit
- what is gained by making a particular choice
- individual choice
- desicions made by people acting seperately
- allocation
- the process of choosing which needs will be satisfied and how much of our resources we will use to satisfy them
- invisible hand
- the incentive that guides individuals to choose in the best interest of society by pursuing their own self-interests
- economics
- the social science that deals with how society allocates its scarce resources among its unlimited wants and needs
- economic profit
- the difference between the money you abotain from selling a product and the cost of producing the product
- psychic income
- the nonmonetary reward we get from taking some action
- microeconomics
- the branch of economics that wxamines the choices of individuals concerning one product, one firm, or one industry
- limited resources
- the condition of there not being enough resources to fulfill all wants and needs
- opportunity cost
- the value of any alternative that you must give up when you make a choice