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Ccroagunk
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Efficiency
The property of society getting the most it can from its scarce resources
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Economics
The study of how society manages its scarce resources
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Scarcity
The limited nature of societies resources
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Equity
The property of distributing economic prosperity fairly among the members of society
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Opportunity Cost
Whatever must be given up to obtain some item
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Rational People
People who systematically and purposefully do the best they can to achieve their objectives
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Marginal Changes
Small, incremental adjustments to a plan of action
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Incentive
Something that induces a person to act
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Market Economy
An economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
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Property Rights
The ability of an individual to own and exercise control over scarce resources
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Market Failure
A situation in which a market left on its own fails to allocate resources efficiently
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Externality
The impact of one person's actions on the well-being of a bystander
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Market Power
The ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
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Productivity
The quantity of goods and services produced from each hour of a worker's time
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Inflation
An increase in the overall level of prices in the economy
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Business Cycle
Fluctuations in economic activity, such as employment and production
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