Chapter 1: The Economic Approach

A series of flashcards focused on vocabulary terms and definitions based on key concepts from Chapter 1: The Economic Approach.

Scarcity

The condition where desires for goods and services exceed their availability.

Choice

The selection among available alternatives due to scarcity.

Opportunity Cost

The highest valued alternative that must be sacrificed when a choice is made.

Economizing

Gaining a specific benefit at the least possible cost.

Positive Economics

The scientific study of 'what is' among economic relationships, involving potentially verifiable statements.

Normative Economics

Judgments about 'what ought to be' in economic matters, reflecting subjective values.

Ceteris Paribus

A Latin term meaning 'other things constant,' used in economic discussions to simplify effects.

Marginal Analysis

A decision-making process that involves comparing additional benefits and costs.

Competition

The rivalry among sellers to attract customers while lowering costs.

Rationing

The method by which scarce goods are distributed among competing uses.