Civics and Economics Vocabulary

Chapter 18 - Section OneNeed- required for survivalSimilarity/Difference:Sentence:

Want- things we would like to haveSimilarity/Difference:Sentence:

Economics- the study of how we make decisions in a world in which resources are limitedSimilarity/Difference:Sentence:

Microeconomics- economists look at the small pictureSimilarity/Difference:Sentence:

Macroeconomics- looks at the big pictureSimilarity/Difference:Sentence:

Economic Model- a theory that tries to explain human economic behaviorSimilarity/Difference:Sentence:

Economic System-way of producing the things its people want and needSimilarity/Difference:Sentence:

Resource- things used in making goods and providing servicesSimilarity/Difference:Sentence:

Scarcity- occurs whenever we do not have enough resources to produce all the things we would like to haveSimilarity/Difference:Sentence:

Chapter 18 - Section 2Trade-Off- the alternative you face if you decide to do one thing rather than anotherSimilarity/Difference:Sentence:

Tara Pawlyk Friday, May 17, 2013 8:19:47 AM ET 04:0c:ce:d3:10:88

Opportunity Cost- cost of the next best use of your time or money when you choose to do one thing rather than anotherSimilarity/Difference:Sentence:

Marginal Cost- the additional cost of producing one additional unit of outputSimilarity/Difference:Sentence:

Marginal Benefit- the additional satisfaction or benefit received when one more unit is producedSimilarity/Difference:Sentence:

Cost-benefit Analysis- comparing the marginal benefits against the marginal costsSimilarity/Difference:Sentence:

Tara Pawlyk Friday, May 17, 2013 8:19:47 AM ET 04:0c:ce:d3:10:88