Define the Word
Define Economy
A system used to manage limited resources for the production, distribution, and consumption of goods and services.
Based on this definition: a metaphor to describe the unseen forces that drive the free market economy. what is the word?
invisible hand
Based on this definition:States that it's impossible to get something for nothing. what is the word?
no-free-lunch principle
Define Normative Economics
The branch of economics that applies value judgements to data in order to recommend actions or policies. The goal is to advise how things ought to be done.
Based on this definition: Abstract representation of an economic process or system. It is used by economists to analyze and predict economic behavior and outcomes. what is the word?
economic model
Define Scarcity
The condition that results because people have limited resources but unlimited wants.
Based on this definition: Used by economists to determine economic laws and principles.What is the word?
scientific method
Based on this definition: The cost versus benefit principles means you should only do something if the benefits are greater than the costs. what is the word?
costs-versus-benefits principle
Define Benefits
The positive outcomes or advantages derived from economic activities, policies, or decisions.
Based on this definition: Marginal cost is the cost of producing one additional unit of a good or service. what is the word?
marginal costs
Define Resource
The term resource in economics refers to inputs or assets used in the production of goods and services.
Based on this definition: Indicators that reveal current trends in the economy. what is the word?
variable
Define Positive Economics
The branch of economics that uses objective analysis to find out how the world works. The goal is to describe how things are.
Define Costs
The expenses incurred by firms or individuals when producing goods or services.
Based on this definition:The idea that individuals and businesses act in their self-interest, and through the process of trade, resources are allocated efficiently in an economy.what is the word?
Markets-coordinate- trade principle
Define Market
Where buyers and sellers trade goods or services.
Based on this definition: The reference lines used in graphs or charts to represent different variables. what is the word?
axis
Based on this definition: A way to compare the costs of an action with the benefits of that action. If benefits exceed costs, then the action is worth taking. what is the word?
cost-benefit analysis
Define Margin
The marginal principle compares extra benefits to extra costs for small changes.
Based on this definition: Marginal benefit is the additional benefit gained from consuming one more unit of a good or service. what is the word?
marginal benefit
Define Economic Enigmas
Economic enigmas are situations, phenomena, or patterns in economics that are puzzling, counterintuitive, or difficult to explain through conventional economic theories.
Based on this definition:A fundamental concept in economics that explains how the limited nature of resources (scarcity) forces individuals, businesses, and governments to make choices (trade-offs). what is the word?
scarcity-forces-tradeoffs principle
Define Tradeoff
The exchange of one benefit or advantage for another that is thought to be better.
Define Incentive
Any factor that encourages or motivates a person to do something. Prices, taxes, and laws create incentives that influence how people behave.
Based on this definition: The trade-makes-people-better-off principle means people benefit when they specialize and trade, as it allows everyone to get more of what they want. what is the word?
Trade-makes-people- better-off principle