 | Term | Definition |
| |
Trade-offs |
Alternatives that must be given up when one is chosen rather than another |
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Opportunity cost |
Cost of the next best alternative use of money, time, or resources when one choice is made rather than another |
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Opportunity benefit |
The benefit of choosing an alternative over another |
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Production Possibilities Frontier |
Diagram representing maximum combinations of goods and or services an economy can produce when all productive resources are fully employed |
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Cost-benefit analysis |
Way of thinking that compares the cost of an action to its benefits |
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Free enterprise economy |
Market economy in which privately owned buisnesses have the freedom to operate for a profit with limited government intervention |
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Standard of living |
Quality of life based on ownership of necessities and luxeries that make life easier |
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What does it mean to have all resources fully employed |
You are using all your resources effeciently and to their max |
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What is a model and why are they useful? |
A model represents something and helps us make better decisions or explain something |
