Oikonomos: Greek work that then became… Economics!
Efficiency: Society is getting the maximum benefits from it’s scarce resources (Size of Pie)
Equality: Benefits are distributed uniformly among society’s members (Division of Pie slices)
Margin: Edge (knife edge? idr lol)
Economics: “How society manages its scarce resources” - (Alfred Marital): “A study of mankind in the ordinary business of life.”
Scarcity: Society has limited resources and therefor cannot produce all the goods and services people wish to have
Opportunity Cost: What you give up to get something
Rational People: Systematically and purposefully do the best they can to achieve their objectives, given the available opportunities
Marginal Change: Used to describe a small incremental adjustment to an existing plan of action
Incentive: Something that induces a person to act
Market Economy: Decisions of a central planner are replaced by the decisions of millions of firms and households
Property Rights: Individuals can own and control scarce resources
Market Failure: Market on its own fails to produce an efficient allocation of resources
Externality: Impact of one person’s actions on the well-being of a bystander
Market Power: Ability of a single person or firm to unduly influence market prices
Productivity: The amount of Goods and Services produced by each unit of labor input
Inflation: An increase in the overall level of prices in the Economy
Business Cycle: The irregular and largely unpreditable fluctuations in economic activity, as measured by the production of Goods and Services or the numbers of people employed.