Group1

- An economic principle in which a limited supply of a

good, coupled with a high demand for that good,
results in a mismatch between the desired supply
and demand equilibrium. Because of this, people
must make choices among different items due to
their unlimited wants but limited resources.
The cost of an alternative that must be
forgone in order to pursue a certain action.
Put another way, the benefits you could
have received by taking an alternative
action.
- A principle that says a person should
take an action if, and only if, the extra
benefit from taking it is greater than the
extra cost.
The principle of voluntary exchange is
based on the notion that people act in their
own self-interest. Self-interested people
wont exchange one thing for another unless
the trade makes them better off. (Wikipedia
2014)
- A principle that states that there is a
decrease in the marginal (per-unit) output
of a production process as the amount of a
single factor of production is increased,
while the amounts of all other factors of
production stay constant. (wikipedia 2014)
- A person( or a firm or society) is more
likely to take an action if its benefits rises,
and is less likely to take if its cost rises. In
short incentives matter. An incentive
motivates a person to take an action.
(Wikipedia 2014)

- What someone must make when
faced with two or more alternative
uses of a resource (also called
economic choice).
- All natural, human, and human-made
aids to production of goods and services
(also called productive resources).

One of the most fundamental concepts
of economics and it is the backbone of a
market economy.

c.2) Supply - represents how much the
market can offer.
- One of the many varieties of systems,
institutions, procedures, social relations and
infrastructures whereby parties engage in
exchange. While parties may exchange
goods and services by barter, most markets
rely on sellers offering their goods or
services (including labor) in exchange for
money from buyers. It can be said that a
market is the process by which the prices of
goods and services are established.

- A component of any economic system that
uses prices expressed in any form of money
for the valuation and distribution of goods and
services and the factors of production.


-Measure of the quantity of output
produced by one unit of production
input in a unit of time.