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Consumer Economics

Unit 1 Vocabulary

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Economics

Unit 1 Notes

 

Economics                     The study of people producing and exchanging to get goods and services they want

 

Economy                       The system that results from choices we make as consumers, workers, business owners, and government officials

 

Voluntary Exchange          Getting what you want in exchange for something they want

 

Market                          Arrangement where exchanges are allowed to happen

 

Scarcity                         Central economic problem facing all countries.  The inability to satisfy all wants due to lack of resources

 

Opportunity Cost:          The best alternative given up when making a choice.

 

Marginal Cost              Extra costs of the choice made

 

Marginal Benefits            Extra benefits of the choice made

 

Productive Resources          Capital, Human, and Natural

 

 

 

 

 

 

 

 

 

 

 

 

 

Law of increasing opportunity cost:  Obtaining more of a good in equal   amounts requires giving up even larger amounts of the alternative good.

 are increased or technology allows for their

 

 

 

Inside frontier: unemployed resources or resources used inefficiently

 

Expanding frontier: occurs when resources

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