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The Humanities - Economics Glossary

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cost-benefit analysis: A cost-benefit analysis provides an economic framework which can be used to evaluate the viability of proposed solutions to issues or problems, in terms of the associated costs and benefits.  The information gathered through this analysis assists decision making about resource allocation and the likely consequences of proposed solutions.

financial literacy: The ability to make informed judgments and to take effective decisions regarding the use and management of money.1

macroeconomic: The study of economics concerned with the behaviour of the economy as a whole, focusing on the overall (aggregate) performance.

microeconomic: The study of a small part of the economy such as businesses, industries or households.

opportunity cost: The next best use to which the limited productive resources could have been used in the production process.

1. This is an official definition given by Australian Securities and Investment Commission (ASIC)

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