Chapter 1-3🩵

Economics

A social science that studies human behaviour

Economic data

Consists of facts gathered for economic reference or analysis

Need

A need is immediate

A want

Anything in excess of needs that is not necessary for our survival

Opportunity cost

The cost of foregone alternatives

Markets

Exist where buyers and sellers meet to exchange goods and services

Margin

The change in a variable caused by an increase of one unit of another variable

Positive economic

Can be proved to be true or false

Normative economics

Concerned with value judgment about what should occur

Cost benefit analysis

A process that considers all costs and benefits when deciding on a course of action

Externality

Unintended effects on third parties

Microeconomics

Studies the economic behaviour of individuals, households and firms or the small part of the economy

Sustainable

Can be upheld or defended

Resource depletion

The reduction of available natural resources

Resource degradation

Occurs when a natural resource becomes less productive over time

Economic sustainability

The ability of an economy to support a defined level of economic activity indefinitely

Inequality

Inequality of income or wealth is how the income earned in an economy is distributed unequally across the population