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Economics
The study of how society allocates its scarce resources to satisfy unlimited wants and needs.
Scarcity
The limited nature of society’s resources which prevents the production of all the goods and services people wish to have.
Opportunity Cost
The cost of what must be given up to obtain some item in the decision-making process.
Marginal Analysis
The process of comparing marginal benefits to marginal costs when making a decision.
Incentives
Factors that encourage individuals to act in a certain way, influencing their decisions.
Comparative Advantage
The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.
Market Mechanism
The process by which prices and production levels are determined in a free market.
Economic Efficiency
Achieving the maximum benefits from scarce resources based on the size of economic output.
Market Failure
A situation where the market left on its own fails to allocate resources efficiently.
Inflation
An increase in the overall level of prices in the economy.
Gross National Product (GNP)
The total value of all goods and services produced by a nation's residents in a given time period.
Economic Well-Being
The overall quality of life and economic health of individuals within a society.
Labor Productivity
The quantity of goods and services produced from each unit of labor input.
Public Policy
Government actions aimed at addressing societal issues and ensuring public welfare.
Externalities
The impact of one's actions on the well-being of a bystander or third-party non-participant.
