Understanding Economics Exam Review |Latest| UPDATED

Understanding Economics Exam Review |Latest| UPDATED economics *Ans* the study of how people satisfy seemingly unlimited wants with limited resources macroeconomics *Ans* the study of economics on a large scale microeconomics *Ans* the study of economics on a small scale need *Ans* anything required in order to function in society want *Ans* the way or method that we satisfy needs trade-off *Ans* exchange of one thing for another economic analysis *Ans* illustrating how many economic choices lead to trade-offs opportunity cost *Ans* the value of the best foregone alternative; what you gave up to get what you want cost-benefit analysis *Ans* weighing the pros and cons of an economic decision; people buy things when the benefits outweigh the cost TINSTAAFL *Ans* there is no such thing as a free lunch; even if something is free, someone paid for it at some point goods *Ans* physical items services *Ans* labor resources *Ans* money, time, etc. free goods *Ans* good that are not scarce and have no opportunity cost; ex. air; waste products utility *Ans* the usefulness of a good; determines value scarcity *Ans* how much of a good is available; determines value marginal benefit *Ans* the benefit a person receives from consuming one more unit of a good or service; ex. if you have just eaten, you