Chapter 1
The fundamental economic problem of having unlimited human wants and needs in a world with limited resources
Scarcity
Mercantilism
A legally binding agreement between individuals that can be enforced by courts.
Contract
"And they said one to another, Behold, this dreamer cometh." Gen 37:19 Who is the dreamer in this verse?
Joseph
Positive rewards, benefits, or negative consequences that motivate individuals to make specific choices or take actions
Incentives
Goods sold to another country
Exports
Selling ones labor for a specified period of time to an owner who have control over all aspects of their life.
Indentured Servitude
The first plague of Egypt was
Water to blood
Positive Consequences
Benefits
Goods bought from another country
Imports
the next best alternative a person gives up when making a decision
Opportunity Cost
This was Jesus first miracle
Water to Wine
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
when both sides in an exchange believe that what they are getting is worth more than what they gave up.
Voluntary Exchange
Formal and Informal Rules for Economic Behavior
Rules of the Game
To whom did God promise that his children should be in numbers as the stars in heaven?
Abraham
The study of human behavior that emphasizes the choices people make
Economics
An individual who assumes the risks of starting a new buisiness
Entrepreneur
Bonus: This man sold himself as an indentured servant in Chapter 3.
John Harrower
A form of financial assistance
Subsidy
The ark was made from this kind of wood
Gopher Wood