Econ 1.3

Quality of life based on ownership of necessities and luxuries that make life easier.

• Scarcity

• Trade off

• Alternative

• Standard of Living

 Way of thinking that compares the cost of an action to its benefit.

• Opportunity Cost

• Cost Benefit Analysis

• Need

• Assumption

When making choices, the second of two choices is called.

• Market

• Alternative

• Cost-Benefit Analysis

• opportunity cost

Something that we would like to have but is not necessary for survival.

• Want

• Service

• Market

• Assumption

Meeting place or mechanism allowing buyers and sellers to come together.

• Standard of Living

• Market

• Free Enterprise Economy

• Alternative

Cost of the next best alternative use of money, time, or resources when one choice is made over   another choice.

• Opportunity Cost

• Free Enterprise Economy

• Assumption

• Want

Something taken for granted.

• Market

• Service

• Assumption

• Free Enterprise Economy

Market economy in which privately owned businesses have the freedom to operate for a profit with limited government intervention.

• Free Enterprise Economy

• Opportunity Cost

• Market

• Want

Actions in one part of the country or world that have an economic impact on what happens elsewhere are examples of

• specialization    

• trade-offs

• economic interdependence

•  opportunity costs                                     

Simplified version of a complex concept or behavior expressed in the form of an equation, graph, or illustration.

• Alternative

• Opportunity Cost

• Economic Model

• Service