how people, government, and companies use their scarce productive resources to satisfy human's unlimited wants and needs
 

Scarcity

the amount of something available is insufficient to satisfy the desire for it
 

Microeconomics

studies the behavior of individual households, firms, and governments
 

Macroeconomics

studies the behavior of the overall economy (how everyone works together)
 

Positive Economics

how the economy works (looks at whats been occurring to predict the future-looks at facts)
 

Normative Economics

what "ought" to be (value judgements, equity)
 

Efficiency

when society is able to get the greatest amount of satisfaction out of available resources
 

Equity

income and wealth are fairly distributed throughout society
 

Full Employment

State of economy in which all eligible people who want to work can find employment at prevailing wage rates. However, it does not imply 100 percent employment because allowances must be made for frictional unemployment and seasonal factors.
 

Stability

achieved by avoiding or limiting fluctuations in production, employment, and prices
 

Growth

achieved by increasing the economy's ability to produce goods and services
 

Opportunity Cost

value of what you've lost (value of best alternative that is given up when making a choice)
 

Wants

They are boundless, and are not needed in order to survive (one's desire)
 

Needs

They are finite, where a people must have