Econ Unit 1: Week 1 Key Terms

1. Study of how an overall economy behaves

• Microeconomics

• 1. Cost-Benefit Analysis

• Macroeconomics

• Scarcity

1. The gap between limited resources and theoretically unlimited wants

• 1. Opportunity Cost

• Scarcity

• 1. Explicit Cost

• 1. Negative Incentives

1. Any situation where making one choice means losing something else

• 1. Positive Incentives

• 1. Explicit Cost

• 1. Negative Incentives

• 1. Trade-offs

1. Study of how individuals and companies make decisions

• Microeconomics

• 1. Cost-Benefit Analysis

• Macroeconomics

• Scarcity

1. The process used to measure the benefits of making a decision

• Economics

• 1. Cost-Benefit Analysis

• 1. Positives Incentives

• Scarcity

1. What you actually pay for something

• 1. Explicit Cost

• 1. Positives Incentives

• 1. Implicit Cost

• 1. Negative Incentives

1. Punish people with money or a disadvantage for making certain choices and/or behaving a certain way

• 1. Explicit Cost

• 1. Positive Incentives

• 1. Implicit Cost

• 1. Negative Incentives

1. Study of how individuals and societies make choices on how to use scarce resources to meet its wants and needs

• 1. Opportunity Cost

• Economics

• 1. Cost-Benefit Analysis

• 1. Trade-offs

1. The benefit of the next best alternative that is given up when you use up your resources

• 1. Explicit Cost

• 1. Cost-Benefit Analysis

• 1. Opportunity Cost

• Scarcity

1. Reward people with money or some type of advantage for making certain choices and/or behaving a certain way

• 1. Explicit Cost

• 1. Positive Incentives

• 1. Implicit Cost

• 1. Negative Incentives