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scarcity
A situation in which unlimited wants exceed the limited resources available to fulfill those wants
macroeconomics
Study of a nation's economy as a whole.
microeconomics
Study of individual consumers and businesses.
rational self interest
assumption in economics that people do what they want for a reason that makes sense to them at the time of the incident
three fundamental economic questions
what to produce, how to produce, for whom to produce
opportunity cost
Cost of the next best alternative use of money, time, or resources when one choice is made rather than another
trade off
Giving up one thing for another
negative externality
the situation in which costs spill over onto someone who is not involved in producing or consuming the good
positive externality
beneficial side effect that affects an uninvolved third party
factors of production
Land, Labor, Capital, Entrepreneurship
