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14 terms

Civics and Economics Chapter 18: What Is Economics?

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need
requirement for survival, such as food, clothing, and shelter
want
a thing we would like to have, such as entertainment, vacation, or an item, that makes life comfortable and enjoyable
economics
the study of how individuals and nations make choices about ways to use scarce resources to fulfill their needs and wants
microeconomics
the economic behavior and decision-making by individuals and small businesses
macroeconomics
economic behavior and decision-making by government or whole industries or societies
economic model
simplified representation of the real world that economists develop to describe how the economy behaves and is expected to perform in the future
economic system
nations way of producing things its people want and need
resource
the money, people, and materials available to accomplish a communitys goals
scarcity
not having enough resources to produce all of the things we would like to have
trade-off
the alternative you face if you decide to do one thing rather than another
opportunity cost
the cost of the next best use of time and money when choosing to do one thing or another
marginal cost
the additional or extra opportunity cost associated with an action
marginal benefit
the additional or extra benefit associated with an action
cost-benefit analysis
economic model that compares the marginal costs and marginal benefits of a decision