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Unformatted text preview: P a g e | 1 M a cro e co n o m ics Vocabulary Economics - The social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity Economic perspective - Economic way of thinking Opportunity cost - To obtain more of one thing, society for goes the opportunity of getting the next best. That sacrifice is the opportunity cost of the choice. Utility The pleasure, happiness, or satisfaction, obtained from consuming a good or service. Marginal analysis Comparisons of marginal benefits and marginal costs, usually for decision making. Economic principle A statement about economic behavior or the economy that enables prediction of the probable effects on certain actions. Other-things-equal assumption The assumption that factors other than those being considered do not change. Macroeconomic s Examines either the economy as a whole or its basic subdivisions or aggregates, such as the government, household, and business sectors. Aggregate A collection of specific economic units treated as if they were one unit. Microeconomics Part of economics concerned with individual units such as a person, a household, a firm, or an industry....
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