An organized way of providing for the wants and needs of their people
What is an Economic System
The measure of the amount of output gained from one unit of input
What is productivity?
Goods intended to be consumed
What are consumer goods?
A cost you have already paid and cannot recover
What is sunk cost?
Measuring the upsides and downsides of making a choice
What is cost-benefit analysis?
A tractor is this type of good
What is a capital good?
A type of economy in which consumers and privately owned businesses, rather than the government, make the majority of the WHAT, HOW, and FOR WHOM decisions
What is a Mixed Economy
(also accept Free Market)
The name for the skills and education possessed by workers
What is human capital?
The concept that assumes people do what is best for them
What is rational self-interest?
Three categories of economic decision-makers
What are households, firms, and the government?