Economics Unit 1

3. This principle tells us that most of the decisions we make each day involve choices about a little more or a little less of something
4. A system used to manage limited resources for the production, distribution, and consumption of goods and services
10. The branch of economics that uses objective analysis to find out how the economy actually works. It tells us how things currently are.
11. the study of the economy at the level of individuals and businesses
12. the condition that results because people have limited resources but unlimited wants

1. In the U.S., when the demand for laptops increases during back-to-school season, prices often rise. As a result, more stores begin to sell laptops, and manufacturers produce more to meet demand.
2. According to this law, as the quantity of a good consumed increases, the marginal utility of each additional unit decreases
5. The study of how people choose to use their limited resources to satisfy their unlimited wants
6. The branch of economics that applies value judgments to data in order to recommend actions or policies. The goal is to advise how things ought to be done.
7. the study of the workings of the economy as a whole
8. the pleasure, satisfaction, or benefit a person receives from consuming a product or service or from taking an action]
9. explains how an individual’s pursuit of economic self-interest can promote the well-being of society as a whole
10. an economic model showing the production possibilities and tradeoffs between two separate products using all available resources.