Scarcity: When there is only a limited amount of a resource

Marginal Analysis: The additional cost or benefit from participating in any economic activity

Diminishing Marginal Utility: The satisfaction after repeating an event multiple time decreases in a linear fashion

Opportunity Cost: The next best available thing that a decision maker loses when making a decision

Perverse Incentive: When you hope that an incentive will cause something positive to happen when in fact the opposite occurs

Production Possibility Curves: All the possible amounts that a company can produce of two products, the further the curve moves out, higher production levels, any point within the curve represents inefficiency

Land: The resources and warehouse space that is needed for production
Labor: The human or robotic work that produces the product
Capital: The equipment and materials that allow production to happen

Microeconomics: The interaction of individuals in the economy (people and companies)
Macroeconomics: The national economy as a whole, the issues that impact people and companies

Choice Architecture: The way that those in charge can manipulate your behavior and nudge you towards the decisions they want you to make

Libertarian Paternalism: People have the freedom to make decisions but are guided towards the best results

Nudges: A simple push for making a decision that benefits some party in any way, might make it easier to make the right choice

Humans vs. Econs: Econs are rational decision making that it is relatively easy to guess the choice they will make based on logical outcomes, humans might make gut decisions and prefer things that are sometimes irrational

Anchoring Heuristic: A number that was just referenced may serve as an anchor for a different set of information (distance between cities)

Availability Heuristic: An immediate response to a question using data that the brain has accessible in the moment, a regurgitation statement of information

Loss Aversion Bias: People avoid losses more than they are attracted to gains, it is worse to lose $5 than it is better to gain $5

Status Quo Bias: A measure of the current state of affairs and making decisions based on what is currently happening

Overconfidence/Optimism Bias: A common tendency for decision makers to overestimate the accuracy of their predictions

Business Cycle: Economic prosperity is always followed by that of economic despair, economy goes in cycles

Mortgage Backed Securities: A bundled group of mortgages that allow big banks and companies to buy and sell as parts for their company or stocks (pros - a relatively safe investment that gives good payout over time, cons - they are based upon the majority of American's paying their mortgages

Credit Default Swap: A bet against the mortgage bundles or mortgage backed securities, basically fire protection for if Americans stopped paying their mortgages

Ratings Agencies: Create the mortgage backed security bundled and give them a grade based upon the credit scores of people asking for loans for those mortgages

Fiscal Policy: Adjusting tax rates to run the economy smoothly for what it needs, government regulated

Monetary Policy: Controlling the amount of money currently in the market

Keynes vs. Hayek: Keynes - Recession is caused by the fear fairy and government must step in and regulate the market, Hayek - Government inclusion just makes things worse, increasing the monetary supply to flood the economy will make things terribly worse in the future

Paradox of Thrift - Keynes theory which says people tend to save in a recession which makes economic activity exponentially worse

Flat Money: Government rules it as a form of currency and we use it like it is, no actual value to the piece of paper

Fractional Reserve Banking: The money in our accounts multiplies and is a feature of our building debt, we just hope not everybody goes to take it out at once

Federal Reserve: King of all banks who regulates all of the money in the economy, how much to put in, they can increase interest rates and increase the amount of money given to banks to make loans

Dual Mandate: The Federal Reserve has two goals, to promote effectively the goals of maximum employment and to moderate long term interest rates

Reserve Requirement: A certain amount of money that is mandated by the Fed for all banks to keep incase of emergency

Discount Rate: The minimum interest rate set by the Federal Reserve for lending to other banks

Open Market Operations: Buying government securities to ether expand or contract the amount of money in the banking system