1. profit
    a financial gain
  2. standard of living
    how much you have
  3. entrepreneur
    a boss
  4. invisible hand
    the self regulating nature of the market place
  5. microeconomics
    economics concerned for individual decisions
  6. macroeconomics
    economics concerned about the big scale
  7. equilibrium
  8. altruism
    greedy or selfish
  9. comparative advantage
    the ability to do things more efficiently than another thing
  10. command economy
    an economy in which price, etc. are controlled by the government
  11. Adam Smith
    founder of modern economics
  12. market failure
    the production of goods is not efficient
  13. externality
    a consequence
  14. scarcity
    not enough supplies for the demand
  15. investment
    the process of giving money in hope that it will be profitable in the future
  16. market economy
    an that relies on market forces to move goods and resources
  17. self-interest
    one's personal advantage
  18. capitalism
    a system in which a country's trade and industry are privately owned
  19. Karl Marx
    founder of modern communism
  20. tradeoffs
    a compromise
  21. incentive
    a thing that motivates one to do something
  22. marginal benefit/cost
    costs added by producing one more
  23. specialization
    providing one particular product or service
  24. transaction costs
    a cost incurred in making an economic exchange
  25. per capita income
    total national income divided by number of people in the nation
  26. inflation
    an increase in prices and fall in value of money
  27. opportunity cost
    the value of the next best alternative
  28. mixed economy
    both private and public enterprise
  29. human capital
    the skills, knowledge, and experience possessed by an individual orpopulation, viewed in terms of their value or cost to an organization or country.
  30. outsourcing
    obtain services from foreign supplier
  31. tragedy of the commons
    people don't take care of public property but they do take care of private property
  32. sweat shops
    a factory or workshop, esp. in the clothing industry, where manualworkers are employed at very low wages for long hours and under poor conditions.
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