Unit 1: An Economic Way of Thinking Vocabulary Frontload

1. Unit 1: An Economic Way of ThinkingVocabulary Frontload Ms. Ramos Alta Loma High School

2. Illustration Study of how ppl choose to use their lmtd resources to satisfy unlimited wants Economics

3. Illustration System to manage lmtd resources for production, distribution, & consumption of G&S Economy

4. Illustration Econ that uses obj analysis to find out how the world works. Positive Economics Goal: advise how things ought to be done Goal: describe how things are.

5. Illustration Econ that applies judgment to data to recommend actions or policies Normative Economics Goal: advise how things ought to be done Goal: describe how things are.

6. Illustration Condition resulting from lmtd resources but unlmtd wants Scarcity

7. Illustration Exchange of one benefit/adv for a perceived better option Tradeoff

8. Illustration Way to compare costs of an action w/benefits of action. If benefit exceeds costs- it is worth taking Cost-Benefit Analysis

9. Illustration Factor that encourages/ motivates one to do something Incentive taxes, prices, laws

10. Illustration Any arrangement bringing sellers & buyers to do business Market Flea mkt eBay Victoria Gardens

11. Illustration Anything used to produce a good or service Resource workers minerals machines

12. Illustration Something desired Want

13. Illustration What you give up to add one unit to an activity Marginal Cost