Basic Economic Terms

Scarcity

not having enough resources to produce all the things we want

Economics

study of decisions people make because of scarcity

Cost & Benefit

unfavorable things; favorable things to a decision maker

Marginal Utility

added satisfaction gained from one more of something

Incentive

something to persuade a person toward a behavior/decision

Trade-off

giving up something in order to get something else

Opportunity Cost

The best thing given up when a choice is made; the second choice

Sunk Cost

a cost already incurred that cannot be recovered