Term
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Definition
| the limited nature of society's resources |
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Term
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Definition
| the study of how society manages its scarce resources |
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Definition
| the property of society getting the most it can from its scarce resources |
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Definition
| the property of distributing economic prosperity uniformly among the members of society |
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Term
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Definition
| whatever must be given up to obtain some item |
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Term
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Definition
| people who systematically and purposefully do the best they can to achieve their objectives |
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Term
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Definition
| a small increment adjustment to a plan of action |
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Term
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Definition
| something that induces a person to act |
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Term
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Definition
| an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services |
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Term
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Definition
| ability of an individual to own and exercise control over scarce resources |
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Term
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Definition
| situation in which a market left on its own fails to allocates resources efficiently |
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Term
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Definition
| impact of one person's actions on the well-being of a bystander |
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Term
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Definition
| ability of a single economic actor (or small group of actors) to have a substantial influence on market prices |
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Term
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Definition
| quantity of goods and services produced from each unit of labor input |
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Term
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Definition
| increase in the overall level of prices in the economy |
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Term
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Definition
| fluctuations in economic activity |
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Term
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Definition
| visual model of the economy that shows how dollars flow through markets among households and firms |
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Term
| production possibilities frontier (PPF) |
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Definition
| graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology |
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