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.
economics scarcity incentives microeconomics macroeconomics ceteris paribus efficiency equity positive question normative question opportunity costs | The study of how individuals, firms, and society make decisions to allocate limited resources to many competing wants The value of the next best alternative; what you give up to do something or purchase something The factors that motivate individuals and firms to make decisions in their best interest The fairness of various issues and policies Our unlimited wants clash with limited resources, leading to scarcity. Everyone (rich and poor) faces scarcity because, at a minimum, our time on earth is limited. Economics focuses on the allocation of scarce resources to satisfy unlimited wants A question that can be answered using available information or facts Assumption used in economics (and other disciplines as well), where other relevant factors or variables are held constant How well resources are used and allocated. Do people get the goods and services they want at the lowest possible resource cost? This is the chief focus of efficiency A question that is based on societal beliefs on what should or should not take place The decision making by individuals, businesses, industries, and governments The broader issues in the economy such as inflation, unemployment, and national output of goods and services |