Glossary Terms:

One of many choices or courses of action that might be taken in a given situation.

Monetary or non-monetary gain received because of an action taken or a decision made.

Decision made or course of action taken when faced with a set of alternatives.

An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.

A conclusion reached after considering alternatives and their results.

Reaching a conclusion after considering alternatives and their results.

The institutional framework of formal and informal rules that a society uses to determine what to produce, how to produce and how to distribute goods and services.

The study of how people, firms and societies choose to allocate scarce resources with alternative uses.

Tangible objects that satisfy economic wants.

Activities performed by people, firms or government agencies to satisfy economic wants.

The situation that results when the quantity supplied of a product exceeds the quantity demanded. Generally happens because the price of the product is above the market equilibrium price.

The exchange of goods and services for money or other goods and services.