Macroeconomics Chapter 1: What Is Economics

Factors Of Production

The resources used to produce goods and services

Globalization

The expansion of international trade, borrowing and lending, and investment

Human Capital

The knowledge and skill that people obtain from education, job training, and work expierence.

Rational Choice

Compares costs and benefits and achieves the greatest benefit over cost for the person making the choice.

Opportunity Cost

The highest value alternative that must be given up to get it.

Marginal Benefit

Benefit from pursuing an incremental increase.

Marginal Cost

Opportunity cost of pursuing an incremental increase

Economic model

Is a description of some aspect of the economic world that includes only those features that we need for the purpose at hand