The study of how society manages its scarce resources.
Effeciency
The property of society getting the most it can from its scare resources.
Equity
The property of distributing economic prosperity fairly among the members of society
Opportunity Cost
whatever you are giving up to obtain some item
Rational People
People who are systematically and purposefully do the best they can to achieve their objectives
Marginal Changes
small incremenal adjustments to a plan of action
Incentive
Something that induces a person to act; "motivates"
Market Economy
An economy that allocates resources through the decentralized decisions of many firms and households as the interact in the market for goods and services.
Market Failure
A situation in which a market left on its fails to allocate resources efficiently.
Externality
The impact of one person's actions on the well-being of a bystander
Market Power
The ability of a single economic actor to have substantial influence on market prices.
Property Rights
The ability of an individual to own and exercise control over scarce resources.
Productivity
The quantity of goods and services produced from each hour of a worker's time.
Inflation
an increase in the overall level of prices in economy.
Business Cycle
Fluctuations in economy activities, such as employment and production.
What are the 10 PRINCIPLES OF ECONOMY?
#1: People face tradeoffs
#2: The cost of something is what you give up to get ip.
#3: Rational People Think at the Margin
#4: People Respond to Incentives
#5: Trade Can Make Everyone Better Off
#6: Markets Are Usually a Good Way to Organize Economic Activity
#7: Government Can Sometimes Improve Market Outcome
#8: A Country's Standard of Living Depends on Its Ability to Produce Good and Services
#9: Prices Rise When the Government Prints Too Much Money
#10: Society Faces a Short-Run Tradeoff Between Inflation and Unemployment