Fundamentals of Econ Vocab

The study of how households, companies, and individual markets use their resources

• Macro-Economics

• Micro-Economics

• Want

• Need

The study of the economy as a whole. Ex: Unemployment, inflation

• Macro-Economics

• Wants

• Needs

• Micro-Economics

What is the definition of something essential for survival.

• water

• want

• need

• sugar

Something that we desire but that is not necessary for survival.

• want

• need

• scarcity

• water

The extra benefit of adding one unit

• marginal cost

• marginal benefit

• scarcity

• thinking on the margin

The extra cost of adding one unit.

• marginal cost

• marginal benefit

• thinking on the margin

• scarcity

The process of deciding whether to do or use one additional unit of some resource.

• opportunity cost

• opportunity margin

• Thinking on the margin

• scarcity

• An opportunity cost is the value of the next best alternative that is given up when the trade-off is made.

• opportunity cost

• trade-off

• opportunity margin

• profit cost

A phrase expressing the idea that a country that decides to produce more military goods

• opportunity cost

• profit margin

• guns or butter

• trade-off

• The act of giving up one benefit in order to gain another, greater benefit.

• opportunity cost

• guns or butter

• cost-benefit

• trade-off