Economics Vocabulary 4th

What is Opportunity Cost?

• What is given up because you choose to do/buy something else

• An exchange of property without the use of money

• Choosing to trade property because it benefits you

• How quickly and efficiently goods are created

What is Trade?

• What is given up because you choose to do/buy something else

• An exchange of property without the use of money

• Choosing to trade property because it benefits you

• How quickly and efficiently goods are created

Choosing to trade property because it benefits you

• Opportunity Costs

• Trade

• Voluntary Exchange

• Productivity

How quickly and efficiently goods are created

• Opportunity Costs

• Trade

• Voluntary Exchange

• Productivity

A benefit given to get someone to take a certain action

• Trade

• Incentive

• Opportunity Cost

• Scarcity

What is Scarcity?

• When people limit their attention to one business, subject, or study

• When there is too much of product

• When I have the product

• When there is not a lot of product

When people limit their attention to one business, subject, or study

• Specialization

• Interdependence

• Productivity

• Trade

What is Interdependence?

• When people limit their attention to one business, subject, or study

• Depending on yourself for products and services

• Money collected by the government from people or businesses to provide services to citizens

• Depending on one another for products and services

Money collected by the government from people or businesses to provide services to citizens

• Trade

• Taxes

• Debts

• Paychecks