_3_ Scarcity 1. The property of distributing economic prosperity uniformly among society’s members __13__ Economics 2. A situation in which the market fails to allocate __7__ Efficiency resources efficiently 3. Limited resources and unlimited wants __1__ Equality 4. The amount of goods services produced from __18__ Rational each unit of labor input 5. __14__ Opportunity cost The case in which there is only one seller in the market __12__ Marginal change 6. The principle that self-interested market participants may unknowingly maximize the __16__ Incentive welfare of society as a whole 7. __8__ Market economy The property of society getting the most from its 8. scarce resources __17__ Property rights An economic system where interaction of __6__ “Invisible Hand” households and firms in markets determines the 9. allocation of resources __2__ Market failure Fluctuations in economic activity 10. When one person’s actions have an impact on __10__ Externality a bystander
__15__ Market power 11. An increase in the overall level of prices
__5__ Monopoly 12. An incremental adjustment to an existing plan
__4__ Productivity 13. Study of how society manages
its scarce resources __11__ Inflation 14. Whatever is given up to get something else
__9__ Business cycle 15. The ability of an individual
or group to substantially influence market prices 16. Something that induces a person to act
17. The ability of an individual to own and exercise
control over scarce resources 18. Systematically and purposefully doing the best you can to achieve your objectives