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Term Definition
Need Requirements for survival, such as food, clothing, and shelter.
Want A thing we would like to have, such as entertainment, vacations, or an item that makes life comfortable and enjoyable.
Economics The study of how individuals and nations make choices about ways to use scarce resources to fulfill their needs and wants.
Microeconomics The economic behavior and decision-making by individuals and small businesses.
Macroeconomic Economic behavior and decision-making by government or whole industries or societies.
Economic Model Simplified representation of the real world that economists develop to describe how the economy behaves and is expected to perform in the future.
Economic System Nation's way of producing things its people want and need.
Resource The money, people, and materials available to accomplish a community's goals.
Scarcity Not having enough resources to produce all the things we would like to have.
Trade-Off The alternative you face if you decide to do one thing rather than another.
Opportunity Cost The cost of the next best alternative use of time and money when choosing to do one thing rather than another.
Marginal Cost The additional or extra opportunity cost associated with an action.
Marginal Benefit The additional or extra benefit associated with an action.
Cost-Benefit Analysis Economic model that compares the marginal benefits of a decision.

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