Term
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Definition
| A state of the economy in which production is in accordance with consumer preferences; in particular, every good or service is produced up to the point where the last unit prvides a marginal benefit to society equal to the marginal cost of producing |
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Term
| Centrally planned economy |
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Definition
| An economy in which the government decides how economic resources will be allocated |
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Term
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Definition
| A simplified version of reality used to analyze real-world economic situations |
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Term
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Definition
| Something measurable that can have different values, such as the wages of software programmers |
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Definition
| The study of the choices people make to attain their goals, given their scarce resources |
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Definition
| The fair distribution of economic benefits |
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Term
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Definition
| The study of the economy as a whole, including topics such as inflation, unemployment, and economic growth |
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Term
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Definition
| Analysis that involves comparing marginal benefits and marginal costs |
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Term
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Definition
| A group of buyers and sellers of a good or service and the instituition or arrangement by which they come together to trade |
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Definition
| An economy in which the decisions of households and firms interacting in markets allocate resources |
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Term
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Definition
| The study of how households and firms make choices, how they interact in markets, and how the government attepts to influence their choices |
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Term
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Definition
| An econmomy in which most economic decisions result from the interaction of buyers and sellers in markets buut in which the government plays a significant role in the allocation of resources |
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Term
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Definition
| Analysis concerned with what ought to be |
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Term
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Definition
| The highest-valued alternative that must be given up to engage in an activity |
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Term
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Definition
| Analysis concerned with what is |
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Term
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Definition
| A situation in which a good or service is produced at the lowest possible cost |
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Term
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Definition
| A situation in which unlimited wants exceed the limite resources available to fulfill those wants |
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Term
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Definition
| The idea that because of scrcity, producing more of one good or service means procucing less of another good or service |
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Term
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Definition
| A situation that occurs in markets when both the buyer and seller of a product are made better off by the transaction |
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