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Chapter 1: Thinking Like an Economist

Horizontales
The voluntary exchange of goods and services between two or more parties.
The highest valued alternative that must be sacrificed in order to get something else
__ requires decision-makers to evaluate whether the benefit of one more unit of something is greater than its cost.
Refers to the situation in which an individual, business, or country can produce at a lower cost that a competitor can.
Refers to the limited nature of society's resources, given society's unlimited wants and needs.
__ are factors that motivate a person to act or exert effort.
The study of the overall aspects and workings of an economy
Verticales
Brings buyers and sellers together to exchange goods and services.
Occurs when someone focuses his or her skills to become an expert in a particular area.
__ requires a purposeful evaluation of the available opportunities to make the best decision possible.
The study of the individual units that make up the economy.
The study of how people allocate their limited resources to satisfy their nearly unlimited wants.