The act of selecting among alternatives.
Choosing the objective of gaining a specific benefit at the least
possible cost. A corollary of economizing behavior implies that
when choosing among items of equal cost, individuals will
choose the option that yields the greatest benefit.
A good that is scarce. The desire for economic goods exceeds the amount
that is freely available
from Nature.
A set of definitions, postulates, and principles assembled in a manner
that makes clear the "cause and effect" relationships
of economic data.
Erroneous view that what is true for the individual (or the part) will
also be true for the group (or the whole).
The branch of economics that focuses on how human behavior affects
outcomes in highly aggregated markets, such as the markets for
labor or consumer products.
Term used to describe the effects of a change, given the current
situation. For example, the marginal cost is the cost of
producing an additional unit of a product, given the producer's
current facility and production rate.
The branch of economics that focuses on how human behavior affects the
conduct of affairs within narrowly defined units, such as
individual households or business firms.
Judgments about "what ought to be" in economic
matters. Normative economic views cannot be proved false,
because they are based on value judgments.
The scientific study of "what is" among economic
relationships.
An input used to produce economic goods. Land, labor skills, natural
resources, and capital are examples.
Fundamental concept of economics which indicates that less of a good is
freely available than consumers would like.
Development of theory from basic postulates and the testing of the
implications of that theory as to their consistency with events
in the real world. Good theories are consistent with and help
explain real world events. Theories that are inconsistent with
the real world are invalid and must be rejected.
Economic consequences of an initial economic change, even though they are
not immediately identifiable. Secondary effects will be felt
only with the passage of time.
The benefit or satisfaction expected from a choice or course of action.
