Economics

Scarcity

Scarcity is the problem of having too many wants, but not having enough resources to have them

What is economics?

Economics is the study of how individuals, businesses, governments, and societies make decisions about how to allocate scarce resources. It explores the production, distribution, and consumption of goods and services, answering fundamental questions like what gets produced, how it is created, and who gets to consume it

opportunity cost

An opportunity cost is the value of the next-best alternative you give up when making a choice. Because resources like time and money are limited, selecting one option means sacrificing the benefits of all other available alternatives.

trade off

A trade-off is a situational decision that involves giving up or reducing one quality, quantity, or benefit to gain an advantage in another aspect

ceteris paribus

Ceteris paribus is a Latin phrase that translates to "all other things being equal" or "all else being equal". In fields like economics and science, it is used as a simplifying tool to isolate the impact of one variable by assuming that all other potential influencing factors remain completely unchanged.

gross domestic product

Gross Domestic Product (GDP) is the total monetary or market value of all finished goods and services produced within a country's borders during a specific period. It serves as a comprehensive scorecard for a given nation's overall economic health. [1]

production possibilities frontier

The production possibilities frontier ( PPF ) is the boundary between those combinations of goods and services that can be produced and those that cannot.

production efficiency

equillbrium

Equilibrium in economics is a state of balance where opposing forces—such as supply and demand—are perfectly equal.

In an individual market, equilibrium occurs at the price where the quantity of a good consumers want to buy exactly matches the quantity producers are willing to sell. This specific price is often referred to as the market-clearing price. [1, 2, 3]

marginal cost

Marginal cost is the additional expense incurred by a business to produce or deliver one more unit of a product or service. It is a vital metric for setting prices and finding optimal production levels. [1, 2, 3]

Purchasing Power Parity

Economists measure prices using purchasing power parity, solely to make comparisons 

Purchasing Power Parity (PPP) is an economic metric stating that exchange rates should adjust so identical baskets of goods cost the same everywhere

firm

In economics, a firm is an organization that combines resources (inputs) like labor, capital, and raw materials to produce goods or services (outputs). Its primary economic function is to transform these inputs into products with the fundamental goal of maximizing profits