Unit 1 Flashcards
The limited nature of societies resources
Scarcity
The study of how society manages its scarce resources
Economics
The property of society getting the most it can from its scarce resources
Efficiency
The property of distributing economic prosperity uniformly among the members of society
Equality
Whatever must be given to obtain an item
Oppurtunity cost
People who systematically and purposefully do the best they can to achieve their objectives
Rational people
Small incremental adjustments to a plan of action
Marginal adjustments
Something that induces person to act
Incentive
An economy that allocates resources through the decentralized decision of many firms and households as they interact in markets for goods and services
Market economy
The ability of an individual to own and excersize control over scarce resources
Property rights
A situation in which a market left on its own fails to allocate resources efficiently
Market failure
The impact Of one persons actions on the well being of a bystander
Externally
The ability of a single economic actor (or small group) to have a substantial influence on market prices
Market power
The quality of goods and services produced from each unit of about input
Productivity
An increase in the overall level of prices in the economy
Inflation
