Study of man in the ordinary business of life. It inquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man.
Used for logically analyzing information, studying cause and effect, and solving real problems in economics
Because economics is a _________, it must often be satisfied with predicting the direction of change instead of the exact amount of change.
Any action that people take to make them better off or to keep them from becoming worse off.
Economically rational behavior
Economists predict on the basis that all economic units-consumers; businesses; owners of natural resources, capital, and labor; and government-act in a _____ way.
Recognizes that most economic decisions are made “on the margin" and are not of an all-or-nothing type.”
(T/F) When the marginal cost of an activity is increasing and marginal benefit from the same activity is decreasing, a person will maximize his or her well-being gained from the activity by equating marginal cost and marginal benefit
The situation where limited resources are insufficient to produce goods and services to satisfy unlimited human wants.
Scarcity necessitates _____; society chooses what goods and services to produce.
The benefit forgone by not choosing its next best alternative; When society chooses what goods and services to produce, it is choosing what goods and services not to produce.