| interactive activity
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.
Economy Economics Market economy Invisible hand Microeconomics Market failure Recession Macroeconomics Economic growth Individual choice Resource Scarce Opportunity cost Trade- Marginal decisions Marginal analysis Incentive Interaction Trade Gains from trade Specialization Equilibrium Efficient Equity | the social science that studies the production, distribution, and consumption of goods and services. the real cost of an item: what you must give up in order to get it. refers to the way in which the individual pursuit of self- a decision made at the “margin” of an activity to do a bit more or a bit less of that activity. fairness; everyone gets his or her fair share. Since people can disagree about what's “fair,” equity isn't as well defined a concept as efficiency. a system for coordinating society’s productive activities. describes a market or economy that takes all opportunities to make some people better off without making other people worse off. a comparison of the costs and benefits of doing something. 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. an economic situation in which no individual would be better off doing something different. the study of marginal decisions. the branch of economics that is concerned with the overall ups and downs in the economy. (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. a period of economic downturn when output and unemployment are falling; also referred to as a contraction. the decision by an individual of what to do, which necessarily involves a decision of what not to do. the branch of economics that studies how people make decisions and how those decisions interact. a situation in which different people each engage in the different task that he or she is good at performing. an economic principle that states that by dividing tasks and trading, people can get more of what they want through trade than they could if they tried to be self- anything, such as land, labor, and capital, that can be used to produce something else. refers to the way in which the individual pursuit of self- anything that offers rewards to people who change their behavior. when individuals provide goods and services to others and receive goods and services in return. the growing ability of the economy to produce goods and services. an economy in which decisions about production and consumption are made by individual producers and consumers. |