EPF U1 Vocab. & Concept Apps

the study of how we make decisions in a world 

    with limited resources

• economics

• microeconomics

• macroeconomics

• scarcity

the study of the economic behavior and 

    decision making of small units, such as individuals, families, 

    and businesses

• economics

• microeconomics

• macroeconomics

• scarcity

the study of the economy as a whole, 

    including topics such as inflation, unemployment, and 

    economic growth

• economics

• microeconomics

• macroeconomics

• scarcity

unlimited wants and limited resources (time, money, 

    energy, etc.); always exists!

• economics

• microeconomics

• macroeconomics

• scarcity

things we would like to have

• wants

• needs

• cost-benefit analysis

• tradeoff

things we need to survive

• wants

• needs

• cost-benefit analysis

• tradeoff

a decision-making process in which 

    you compare what you will sacrifice and gain by a specific 

    action

• wants

• needs

• cost-benefit analysis

• tradeoff

choices we make/are faced with

• wants

• needs

• cost-benefit analysis

• tradeoff

what we give up when we make a choice; 

    the 2nd best alternative

• opportunity cost

• factors of production

• capital

• entrepreneur

the inputs/resources people use to

      produce goods and services

• opportunity cost

• factors of production

• capital

• entrepreneur