The Basics
Something required for survival, such as food or water
What is a need?
The effort of individuals to create a good or service
What is labor?
What is spent in money, effort, or sacrifices to gain something.
This principle states that decisions made today will impact the days and years to come.
What is "Future consequences matter"?
An item we desire but is not required for survival
What is a want?
Resources gathered from the land such as water, minerals, or sunlight.
What are natural resources?
What is gained from an action in terms of money, experiences, or improvement?
What are benefits?
This concept suggests people win by focusing on what they do well and exchanging with others.
What is "Trade makes people better off"?
A physical object you can buy and touch
What is a good?
Cash, buildings, or machinery used to create value.
What is capital?
The exchange of one benefit for another that is thought to be better.
What is a tradeoff?
The calculation is used to determine if an action is worth taking based on whether gains exceed losses.
What is a "Cost-Benefit Analysis"?
What is a service?
The condition of having limited resources to meet unlimited wants.
What is scarcity?
A factor that motivates an individual to take a particular course of action.
What is an incentive?
This is the value of the next best alternative 'thing' that is given up when making a choice.
What is an Opportunity Cost?
The study of the choices people make to satisfy their wants and needs with a limited supply of resources.
What is economics?
A place where buyers and sellers interact with each other to make trades.
What is a market?
This term describes the current level of consumption of a good or service.
What is a margin?
Natural, Labor, and Capital is what these are.
What are resources?