The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources

A basic requirement for survival-i.e, food, clothing, shelter

A way of expressing a need -i.e, Need: Food; Want: Pizza

A systematic error in thinking that happens when people try to understand the world around them

A risk-taker in search of profits who does something new with existing resources

A cognitive bias that causes people to value items that they own more highly than they would if they did not belong to them

The cost of the next best alternative use of money, time, or resources when another choice is made rather than another

The tendency to keep doing something we’ve already invested heavily in (time, money, effort), even when giving up is clearly a better idea.

Type of market economy in which the factors of production are privately owned.

Economic system characterized by a central authority that makes most of the major economic decisions.

The struggle among sellers to attract consumers.

Term meaning consumers control the market and decide what gets produced.

Economic system in which supply, demand, and the price system help people make decisions and allocate resources. No government involvement.

Economic system that has some combination of traditional, command, and market economies.

Fundamental feature of capitalism, which allows individuals to own and control their possessions as they wish.

Driving force that encourages people and organizations to improve their material well-being.

A cognitive bias that causes people to perceive losses as more significant than gains.

Act of buyers and sellers freely and willingly engaging in market transactions.

"Fear of Missing Out", a popular explanation for why people make the economic choices that they do