• the study of how income is made and used
• is the study of scarcity and choices

Opportunity Cost

• what is giving up to do something

Scarcity

• tension between infinite wants and finite resources

Incentives

• a set of external motivators that explains choices

Macro Economics

• study of the production, employment, prices, and policies on a national scale

Micro Economics

• study of how consumers, workers, firms interact to generate outcomes in specific markets