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Chapter 1 Economics

Horizontales
The resources needed to produce goods and services
To make decisions according to the best combination of costs and benefits.
The alternative people give up when they make choices
The benefit or satisfaction received from using a good or service.
An approach that weighs the benefits of an action against its cost.
Verticales
The additional satisfaction from using one more unit of a product.
Involves the vision, skills, and risk-taking needed to create and run businesses.
Methods used to encourage people to take certain actions.
The value of something that is given up to get something else that is wanted.
The additional cost of using one more unit of a product.