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| Economics | a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services |
| Microeconomics | social science that studies the implications of incentives and decisions, specifically how those affect the utilization and distribution of resources |
| Macroeconomics | a branch of economics that studies how an overall economy—the markets, businesses, consumers, and governments—behave |
| Choices | refers to the ability of a consumer or producer to decide which good, service or resource to purchase or provide from a range of possible options |
| Scarcity | an economics concept rooted in one of the most basic facts of life: we live in a world of limited resources that requires choices about how they are allocated. |
| Factors of Production | land, labor, capital, and entrepreneurship. |
| Land | a factor of production can mean agriculture and farming to the use of natural resources. |
| Labor | the amount of physical, mental, and social effort used to produce goods and services in an economy. |
| Capital | those durable produced goods that are in turn used as productive inputs for further production |
| Entrepreneur | an individual who creates and/or invests in one or more businesses, bearing most of the risks and enjoying most of the rewards |
| Benefits | gains that can be quantified in financial terms, such as money generated or saved |
| Costs | the monetary value of goods and services purchased by producers and consumers. |
| Trade offs | relates to a compromise where you typically give up something in return for something else |
| Opportunity Costs | the cost of an alternative that must be forgone in order to pursue a certain action |
| Fixed Costs | an expense that does not change when sales or production volumes increase or decrease. |
| Variable Costs | expenses that vary |
| Cost Benefit Analysis | a method for comparing the costs and benefits of an intervention, such as a project, policy, or action. |
| Economic Model | a theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them. |
| Goods | are items that satisfy human wants and provide utility |
| Services | an intangible act or performance that a consumer, company, or government is willing to pay for. |
