Term
|
Definition
The best alternative that we forgo, or give up, when we make a choice or a decision.
scarce Limited. |
|
|
Term
|
Definition
| The process of analyzing the additional or incremental costs or benefits arising from a choice or decision. |
|
|
Term
|
Definition
A market in which profit opportunities are eliminated almost instantaneously.
The study of economics teaches us a way of thinking and helps us make decisions. |
|
|
Term
|
Definition
| Cost already incurred: to find cost of new decision. |
|
|
Term
|
Definition
| The branch of economics that examines the economic behavior of aggregates—income, employment, output, and so on—on a national scale. |
|
|
Term
|
Definition
| The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units—that is, firms and households. |
|
|
Term
|
Definition
An approach to economics that seeks to understand behavior and the operation of systems without making judgments.
It describes what exists and how it works. |
|
|
Term
|
Definition
| An approach to economics that analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe courses of action. Also called policy economics. |
|
|
Term
|
Definition
| a mistaken belief, especially one based on unsound argument. |
|
|
Term
|
Definition
“after this (in time), therefore because of this.”
A common error made in thinking about causation: If Event A happens before Event B, it is not necessarily true that A caused B. |
|
|
Term
|
Definition
| The erroneous belief that what is true for a part is necessarily true for the whole. |
|
|
Term
|
Definition
| Things that are produced and then used in the production of other goods and services. |
|
|
Term
|
Definition
| The process of using resources to produce new capital. |
|
|
Term
|
Definition
| that specialization and free trade will benefit all trading parties, even those that may be “absolutely” more efficient producers. |
|
|
Term
|
Definition
| A producer has an absolute advantage over another in the production of a good or service if he or she can produce that product using fewer resources (a lower absolute cost per unit). |
|
|
Term
|
Definition
| A producer has a comparative advantage over another in the production of a good or service if he or she can produce that product at a lower opportunity cost. |
|
|
Term
|
Definition
| The behavior of all households and firms together. |
|
|
Term
|
Definition
| Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded. |
|
|
Term
|
Definition
| long term, markets are self correcting |
|
|
Term
|
Definition
| short term, to fix changes in government spending |
|
|
Term
|
Definition
| how much you bought it for and how much you sold it for |
|
|
Term
|
Definition
| Recession: economy declines or slows down for 2 or more consecutive quarters. |
|
|
