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A diagram showing possible production choices.
The condition where unlimited wants meet limited resources.
Scarcity
Something you must have to live, like food or shelter.
A need
Factors that motivate economic decisions.
Incentives
This is the amount of a good buyers are willing and able to purchase.
Demand
Something you would like to have but can live without.
A want
Who makes money from the interest on a loan?
This is the amount of a good producers are willing to sell.
Supply
Things people use to satisfy their wants and needs.
Goods and services
A person who starts a business and takes a risk.
Entrepreneur
The law of demand says when prices go up, this happens to quantity demanded.
This person makes or sells goods and services.
Producer
What type of loan is typically used to buy a home?
Mortgage
A point inside the Production Possibility Curve represents this.
Inefficient use of resources.
The value of what you gave up when making a choice.
Opportunity cost