Econ Chapter 1

one of two perpendicular lines in a coordinate system, used to locate a point in space

• Axis

• curve

• graph

• coordinate

what is gained by adding one more unit to an activity

• marginal cost

• marginal benefit

• benefit

• ceteris paribus

a system used to manage limited resources for the production, distribution, and consumption of goods and services

• economic model

• economy

• invisible hand

• market

the exchange of one benefit or advantage for another that is thought to be better

• trade off

• marginal benefit

• opportunity cost

• ceteris paribus

the study of how a people choose to use their limited resources to satisfy their unlimited wants

• microeconomics

• macroeconomics

• economics

• positive economics

a method of rational inquiry with six steps: (1) posing a question, (2) researching the question, (3) developing a hypothesis, (4) conducting studies and collecting data, (5) analyzing the data, and (6) evaluating the hypothesis

• economic modeling

• scientific method

• economic enigma

• macro economics

the study of the economy at the level of individuals, households, and businesses

• microeconomics

• macroeconomics

• economics

• invisible hand

anything used to produce an economic good or service

• resource

• invisible hand

• incentive

• applied macroeconomics

what is gained from something in terms of money, time, experience, or other improvements

• benefit

• marginal benefit

• marginal cost

• scarcity

what is given up by adding one more unit to an activity

• marginal cost

• marginal benefit

• cost

• scarcity