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Definition
| The situation in which unlimited wants exceed the limited resources available to fulfill those wants. |
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| The study of the choices people make to attain their goals, given their scarce resources. |
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Definition
| A simplified version of reality used to analyze real-world economic situations. |
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| A group of buyers and sellers ofa good or service and the institution or arrangement by which they come together to trade. |
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| Analysis that involves comparing marginal benefits and marginal costs. |
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| The idea that because of scarcity, producing more of one good or service means producing less of another good or service. |
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Definition
| The highest-valued alternative that must be given up to engage in an activity. |
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| Centrally planned economy |
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Definition
| An economy in which the government decides how economic resources will be allocated. |
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Term
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Definition
| An economy in which the government decides how economic resources will be allocated. |
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Definition
| An economy in which most economic decisions result from the interaction of buyers and sellers in markets but in which the government plays a significant role in the allocation of resources. |
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Definition
| The situation in which a good or service is produced at the lowest possible cost. |
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Term
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Definition
| A state of the economy in which production is in accordance with consumer preferences; in particular, every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it. |
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Definition
| The situation that occurs in markets when both the buyer and seller of a product are made better off by the transaction. |
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Definition
| The fair distribution of economic benefits. |
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Definition
| Something measurable that can have different values, such as the wages of software programmers. |
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Term
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Definition
| Analysis concerned with what is. |
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Term
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Definition
| Analysis concerned with what ought to be. |
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Term
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Definition
| The study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices. |
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Term
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Definition
| The study of the economy as a whole, including topics such as inflation, unemployment, and economic growth. |
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