, economics - CORRECT ANSWERS-the study of how society manages its scarce
resources
scarcity - CORRECT ANSWERS-the limited nature of society's resources
efficiency - CORRECT ANSWERS-the property of society getting the most it can from
its scarce resources
equality - CORRECT ANSWERS-the property of distributing economic prosperity
uniformly among the members of society
opportunity cost - CORRECT ANSWERS-whatever must be given up to obtain some
item
rational people - CORRECT ANSWERS-people who systematically and purposefully do
the best they can to achieve their objectives
marginal change - CORRECT ANSWERS-a small incremental adjustment to a plan of
action
incentive - CORRECT ANSWERS-something that induces a person to act
market economy - CORRECT ANSWERS-an economy that allocates resources through
the decentralized decisions of many firms and households as they interact in markets
for goods and services
property rights - CORRECT ANSWERS-the ability of an individual to own and exercise
control over scarce resources
market failure - CORRECT ANSWERS-a situation in which a market left on its own fails
to allocate resources efficiently
externality - CORRECT ANSWERS-the impact of one person's actions on the well-
being of a bystander
market power - CORRECT ANSWERS-the ability of a single economic actor (or small
group of actors) to have a substantial influence on market prices
productivity - CORRECT ANSWERS-the quantity of goods and services produced from
each unit of labor input
inflation - CORRECT ANSWERS-an increase in the overall level of prices in the
economy
business cycle - CORRECT ANSWERS-fluctuations in economic activity, such as
employment and production
resources
scarcity - CORRECT ANSWERS-the limited nature of society's resources
efficiency - CORRECT ANSWERS-the property of society getting the most it can from
its scarce resources
equality - CORRECT ANSWERS-the property of distributing economic prosperity
uniformly among the members of society
opportunity cost - CORRECT ANSWERS-whatever must be given up to obtain some
item
rational people - CORRECT ANSWERS-people who systematically and purposefully do
the best they can to achieve their objectives
marginal change - CORRECT ANSWERS-a small incremental adjustment to a plan of
action
incentive - CORRECT ANSWERS-something that induces a person to act
market economy - CORRECT ANSWERS-an economy that allocates resources through
the decentralized decisions of many firms and households as they interact in markets
for goods and services
property rights - CORRECT ANSWERS-the ability of an individual to own and exercise
control over scarce resources
market failure - CORRECT ANSWERS-a situation in which a market left on its own fails
to allocate resources efficiently
externality - CORRECT ANSWERS-the impact of one person's actions on the well-
being of a bystander
market power - CORRECT ANSWERS-the ability of a single economic actor (or small
group of actors) to have a substantial influence on market prices
productivity - CORRECT ANSWERS-the quantity of goods and services produced from
each unit of labor input
inflation - CORRECT ANSWERS-an increase in the overall level of prices in the
economy
business cycle - CORRECT ANSWERS-fluctuations in economic activity, such as
employment and production
