Chapter 1
The fundamental economic problem of having unlimited human wants and needs in a world with limited resources
Scarcity
Mercantilism
Positive rewards, benefits, or negative consequences that motivate individuals to make specific choices or take actions
Incentives
Goods sold to another country
Exports
Positive Consequences
Benefits
Goods bought from another country
Imports
Money left over after paying all costs
Profit
When individuals choose not to be entirely self-sufficient in producing everything they need and focus on one thing.
Specialization
The study of human behavior that emphasizes the choices people make
Economics
An individual who assumes the risks of starting a new buisiness
Entrepreneur