About people and the choices they make, individual choices underlie the organizations
Fundamental concept of economics that indicates that there is less of a good "freely" available from nature than people would like.
ex. Things you want
The act of selected alternatives
An input used to produce economic goods
Basic level of need
Definitions, postulates, and principles assembled in "cause and effect" relationships
Anything used in producing goods and services
material or tangible stuff/property
Action; something that is done, adds value
Raw materials from the earth
Mental and physical effort
Goods used in producing goods and services
The highest valued alternatice that must be sacrificed as a result of choosing among alternatives
Choosing with the objective of gaining a specific benefit at the least possible cost
The subjective benefit or satisfaction a person expects from a choice or course of action
Effecs of a change in a current situation;additional
Involves effects of net additions
Will it be a good descision? What can i get out of it?
Consequences of economic change that are not immediatly identifiable
The amount supplied is less than the amount demanded at a "Particular Price"; can be eliminated
less of the material requirements for life; can be eliminated (limit population and ration)
Less than someone else by comparision; can be eliminated (rationing)
less than the gov't standard of income or wealth; can be eliminated (lower the standard)
Questions of Scarcity
What will be produced?, How will it be produced?, how much will be produced?, how much will be rationed
Seeking the greatest benefit in goods and services for the least amount of resources
short term affects, the results are seen quickly
What someone will give you at the present time
The scientific study of "what is" among economic relationships
Judgements about "what ought to be" in economic matters
other things constant
Cause and Effect
Relationships are not always evident
Fallacy of Composition
What is true for the individual is true for the group
Human behavior within a narrow unit
How human behavior affects outcomes on a giant scale
Father of economics
Free exchanged motivated by self interest, regulated by competative prices
Money earned or recieved over a fixed amount of time
price paid for labor
how much time does it take to produce the item
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