Discussion from Chapter 1

Front

Economic thinking

Back

involves a purposeful evaluation of available opportunities to make the best decisions possible.

Front

Marginal thinking

Back

requires decisions makers to evaluate whether the benefit of one more unit of something is greater than its cost.

Front

Marginal analysis

Back

a process that economic thinkers use to break decisions into smaller parts

Front

This brings buyers and sellers together to exchange goods and services

Back

markets

Front

This is the voluntary exchange of goods and services between two or more parties.

Back

market

Front

This refers to the situation where an individual, business, or country can produce at a lower opportunity cost than a competitor can.

Back

comparative advantage

Front

This refers to the inherently limited nature of society's resources, given society's unlimited wants and needs.

Back

scarcity

Front

the study of individuals and societies allocate their limited resources to satisfy their practically unlimited wants

Back

economics

Front

the study of individual units that make up the economy

Back

microeconomics

Front

What are the five foundations of economics?

Back

incentives, trade-offs, opportunity costs, marginal thinking, and trade creates value