CH. 18-19 What is Economics?/The American Economy

Alternative you face if you decide to do one thing rather than another.

• Total Cost

• Good

• Trade Off

• Want

Amount of money a firm receives from selling a certain amount of a good or service.

• Total Revenue

• Economics

• Cost Benefit Analysis

• Scarcity

Driving force that encourages individuals and organizations to improve their material well-being.

• Productivity

• Service

• Factor Market

• Profit Motive

Economic system in which supply, demand, and prices help people make decisions and allocate resources (with minimal to no government intervention)

• Specialization

• Division of Labor

• Trade Off

• Free Market

Extra, or additional, cost of producing one additional unit of output.

• Factor Market

• Marginal Cost

• Want

• Need

Field of economics that examines economy-wide phenomena, such as changes in unemployment, gross domestic product, inflation and other aspects of a country’s economy.

• Cost Benefit Analysis

• GDP

• Macroeconomics

• Specialization

In a global economy, the US relies on other countries, as they rely on the US, to provide goods and services to be consumed.

• Economic Interdependence

• Productivity

• Scarcity

• Service

Study of how we make decisions in a world where resources are limited.

• Cost Benefit Analysis

• Marginal Benefit

• Product Market

• Economics

Total dollar value of all final goods and services produced in a country during a single year; this is a measurement of a country’s economic health.

• Total Revenue

• Total Cost

• GDP

• Scarcity

When people, businesses, regions, and/or nations concentrate on goods and services that they can produce better than anyone else.

• Specialization

• Trade Off

• Want

• Economics