Economics Final Review

Cost of the next best alternative use of money, time, or resources when one choice is made rather than another

the situation in which costs spill over onto someone who is not involved in producing or consuming the good

Giving up one thing for another

A situation in which unlimited wants exceed the limited resources available to fulfill those wants

what to produce, how to produce, for whom to produce

beneficial side effect that affects an uninvolved third party

Land, Labor, Capital, Entrepreneurship

assumption in economics that people do what they want for a reason that makes sense to them at the time of the incident

Study of individual consumers and businesses.

Study of a nation's economy as a whole.