| A | B |
|---|
| Economics | The study of human behavior in the endeavor to fulfill needs and wants with limited resources |
| trade off | is sacrificing one good or service to purchase or produce another |
| incentive | Motivation to do something |
| Adam Smith | father of modern Economics |
| Factors of production | Land, labor, capital |
| The Wealth of Nations | Book written by the father of modern Economics |
| opportunity cost | refers to the value of the next best alternative given up for the alternative that was chosen |
| microeconomics | deals with behavior and decision making by small units such as individuals, families, and firms |
| macroeconomics | deals with the economy as a whole and decision making by large units such as governments and global organizations |
| scarcity | The fundamental economic problem facing all societies |
