Vocabulary 1
The social science that studies the choices that individuals, businesses, and governments make as they cope with scarcity.
What is economics?
A reward or a penalty that encourages or discourages an action.
What is an incentive?
A choice that uses the available resources to best achieve the objective of the person making the choice.
What is a rational choice?
The best thing you must give up to get something else.
What is an opportunity cost?
During a chess game, a player sacrifices a chess piece to gain an advantage over their opponent. The piece that was sacrificed would be considered what in economic terms?
Opportunity cost
The objects and the actions that people value and produce to satisfy human wants.
What are goods and services?
A choice that is made by comparing all the relevant alternatives systematically and incrementally.
What is a Margin?
The condition that arises because wants exceed the ability of resources to satisfy them.
What is Scarcity?
The value of one currency for the purpose of conversion to another.
What is the exchange rate?
The rarest non-renewable resource in the video game Minecraft's survival mode.
What is a Dragon Egg?
The opportunity cost that arises from a one-unit increase in an activity.
What is a Marginal cost?
An exchange-- giving up one thing to get something else.
What is a tradeoff?
The study of the choices that individuals and business make and the way these choices interact and are influenced by governments.
What is microeconomics?
A market where portions of companies and businesses are bought and traded.
What is the stock market?
A type of wage where a person is paid a decided amount by the hour.
What is a hourly wage?
The gain or pleasure something brings, measured by what you are willing to give up to get it.
What is Benefit?
The benefit that arises from a one-unit increase in an activity.
What is a marginal benefit?
The choices that are best for the individual who makes them.
What is Self-interest?
The nation with the largest economy.
What is the United States of America?
A business model where users can purchase virtual goods with micropayments. Often used in Free-to-play games.
What are microtransactions?
The study of the aggregate (or total) effects on the national economy and the global economy of the choices that individuals, businesses, and governments make.
What is macroeconomics?
A description of the economy or a part of the economy that includes only those features assumed necessary to explain the observed facts.
What is an economic model?
The choices that are best for society as a whole.
What is social interest?
Credited with creating the modern-day study of Economics with his publication of the book An Inquiry into the Nature and Causes of the Wealth of Nations, in 1776.
Who is Adam Smith?
A business model in which a customer must pay a recurring price at regular intervals for access to a product or service
What is a subscription service?