Economics TCI #1

Any factor that encourages or motivates a person to do something. Prices, taxes, and laws create incentives that influence how people behave.

• scarcity

• tradeoff

• incentives

• economy

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

• economics

• positive economics

• tradeoff

• cost-benefit analysis

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

• tradeoff

• normative economics

• cost-benefit analysis

• economy

A tax that everyone pays the same amount no matter how much money they make.

• progressive tax

• no tax

• Flat Tax

• scarcity

a tax that you pay a higher percent depending on how much your income is

• scarcity

• progressive tax

• tradeoff

• flat tax

the branch of government that uses objective analysis to fine out how the world works. The goal is to describe how things are.

• cost-benefit analysis

• normative economics

• incentive

• positive economics

the condition that results because people have limited resources but unlimited wants

• tradeoff

• scarcity

• normative economics

• economy

the branch of economics that applies value judgments to data in order to recommend actions or policies. The goal is to advise how things ought to be done.

• normative economics

• economics

• positive economics

• economy

a way to compare the costs of an action with the benefits of that action. If benefits exceed costs, then the actions is worth taking.

• cost-benefit analysis

• tradeoff

• incentive

• economy

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

• tradeoff

• economics

• positive economics

• economy