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Ch. 1, Sect. 2: "Trade-Offs"

Horizontales
goods created for direct consumption
amount a buyer pays
additional
represent military spending
occurs when the products being produced are the ones most desired by society
to hold other variables constant
making decisions based on increments
Verticales
value of the next best alternative that is given up when making a choice
goods created for indirect consumption
occurs when products are being produced in the least costly way
money spent by businesses to improve their production
exchanging one thing for the use of another
represents domestic spending
model that shows alternative ways that an economy can use its scarce resources
amount the seller pays to produce a good