Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
Trade-off Marginal decisions Interaction Efficient Individual choice Equilibrium Opportunity cost Resource Trade Marginal analysis Gains from trade Incentive Equity Scarce Specialization | an economic situation in which no individual would be better off doing something different. in short supply; a resource is scarce when there is not enough of the resource available to satisfy all the various ways a society wants to use it. gains achieved by dividing tasks and trading; in this way people can get more of what they want through trade than they could if they tried to be self-sufficient. fairness; everyone gets his or her fair share. Since people can disagree about what is “fair,” equity is not as well defined a concept as efficiency. the practice, in a market economy, in which individuals provide goods and services to others and receive goods and services in return. the real cost of an item: what you must give up in order to get it. the situation in which each person specializes in the task that he or she is good at performing. a decision made at the “margin” of an activity to do a bit more or a bit less of that activity. a comparison of costs and benefits of doing something. (of choices) my choices affect your choices, and vice versa; a feature of most economic situations. The results of this interaction are often quite different from what the individuals intend. anything that offers rewards to people who change their behaviour. description of a market or economy that takes all opportunities to make some people better off without making other people worse off. the study of marginal decisions. anything, such as land, labour, and capital, that can be used to produce something else; includes natural resources (from the physical environment) and human resources (labour, skill, intelligence). the decision by an individual of what to do, which necessarily involves a decision of what not to do. |