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.

Money in the form of paper currency or coins (as distinct from checks, money orders or credit).

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

The second-best alternative (or the value of that alternative) that must be given up when scarce resources are used for one purpose instead of another.

Payments for labor services that are directly tied to time worked, or to the number of units of output produced.

Desires that can be satisfied by consuming or using a good or service. Economists do not differentiate between wants and needs.

Effort applied to achieve a purpose or result, often for pay; skills and knowledge put to use to get something done; employment at a job or in a position; occupation, profession, business, trade, craft, etc.