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.
Individual choice Resource Scarce Opportunity cost Trade-off Marginal decisions Marginal analysis Incentive Interaction Trade Gains from trade Specialization Equilibrium Efficient Equity | the situation in which each person specializes in the task that he or she is good at performing. a comparison of costs and benefits of doing something. the decision by an individual of what to do, which necessarily involves a decision of what not to do. the real cost of an item: what you must give up in order to get it. anything that offers rewards to people who change their behavior. description of a market or economy that takes all opportunities to make some people better off without making other people worse off. 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. a decision made at the “margin” of an activity to do a bit more or a bit less of that activity. the practice, in a market economy, in which individuals provide goods and services to others and receive goods and services in return. (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. the study of marginal decisions. 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. anything, such as land, labor, and capital, that can be used to produce something else; includes natural resources (from the physical environment) and human resources (labor, skill, intelligence). 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. an economic situation in which no individual would be better off doing something different. |