Unit One Lesson One Economics

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

• Economics

• Macro economics

• Micro economics

• Incentives

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

• Positvie economics

• Macro economics

• Micro economics

• Incentives

Branch of economics that uses objective analysis to find out how the economy actually works, describes how things are

• Incentives

• Macro economics

• Micro economics

• Positive economics

Something that motivates a person to take a particular course of action

• Positive economics

• Incentives

• Tradeoffs

• Normative economics

The study of the workings of the economy as a whole

• Macro economics

• Micro economics

• Tradeoffs

• Positive economics

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

• Incentives

• Normative economics

• Positive economics

• Economy

Value judgments to data in order to recommend actions or policies. The goal is to advise how things ought to be done.

• Micro economics

• Normative economics

• Positive economics

• Macro economics

The demand for a good or service is greater than the availability of the good or service

• Supply

• Scarcity

• Incentives

• Tradeoffs

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

• Scarcity

• Economy

• Tradeoff

• Incentives

Compare the costs of an action with the benefits of that action; if benefits exceed costs, then the action is worth it

• Incentives

• cost-benefit analysis

• Positive economics

• Normative economics