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| Is the decisoin by an individuals of what to do, which is necessarily involves a decision no to do. |
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| Is anything that can be used to produce something else. |
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| Recources are scarce- there is not enough of the resources available to satisfy all the various ways a society to use them. |
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| The real cost of an item is its opprotunity cost: What you must give up in order to get it. |
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| You make a Trade off- when you compare the costs with the beneifits of doing something. |
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| Decisions about whether to do a bit more or a bit less of an activity. |
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| The study of Marginal decisions is know as Margianl analysis. |
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| Is anything that offers rewards to people who can change their behavior. |
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| interaction- of choices-my choices affect your choices and vice versa- is a feature of most economic situations. The results of this interaction are often quite different from what the individual intend. |
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| In a market economy individuals engage in Trade: they provide goods and services to others and recives goods and services in return. |
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| people can get more of what they could if they tried to be self-suffcient. This increase in output is due to specialization. |
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| Each person specializes in the task that he or she is good at performing. |
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| When no individual woul dbe better off doing something different. |
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| An economy is efficient if it takes all opprotunities to make some people better off without making other people worse off. |
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| means that everyone gets his or her fair share, since people can disagree about what's "fair," equity isn't as well defined a concept as efficiency. |
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