the Economic Way of Thinking

Benefits, or REWARDS, offered to encourage people to act a certain way are

• costs

• incentives

• profits

Consequences people try to avoid are

• benefits

• costs

• incentives

Expansion of international trade, communications, and transportation across regions, nations, and cultures

• globalization

• voluntary trade

• scarcity

Intangible actions or activities that one person performs for another

• Goods

• Services

Money left over after a business has paid all its costs – wages, rent, utilities, taxes, etc.

• incentives

• profits

• competition

People exchange something they value less for something they value more

• opportunity cost

• globalization

• voluntary trade

Results that are not expected or predicted. Usually used when referring to government policies that produce unwelcome results

• benefits

• profit

• competition

• unintended consequences

Positive consequences

• incentives

• benefits

• costs

Rivalry between two or more businesses, each seeking to earn the business of consumers by offering quality products at reasonable prices

• incentives

• goods

• competition

Tangible, or touchable, objects that satisfy what you need or want

• services

• goods