Scarcity and Factors of Production
Opportunity Cost
Production Possibilites
Economic Systems
Terms to know
100
Something people must have to survive like food, air, and shelter
What is a need
100
When people make decisions the make choices. When the choice they make gives positive or added value what do we call that.
What is a benefit
100
Graphs that show alternative ways of using a countries resources
What is Production possibilities curve
100
The method a society uses to produce and distribute goods and services
What is economic system
100
The study of economic behavior of individuals, families, and businesses
What is microeconomics
200
Something that people would like to have but is not necessary for survival.
What is a want
200
Alternatives that we given up when a choice is made in a decision.
What is a trade-off
200
This shows the maximum possible production
What is production possibilities frontier
200
This system relies on custom to make most economic decisions.
What is traditional economy
200
The study of behavior and decision making of entire economies
What is macroeconomics
300
Limited amount of resources to meet unlimited desires
What is scarcity
300
The term used to describe when a country has to make a choice between military spending or fewer resources for use for consumer goods.
What is guns or butter
300
Using fewer resources than it is capable of using
What is underutilization
300
Economic decisions are made by individuals and are based on exchange or trade
What is market economy
300
Goods and services that are provided by the government because it would be inefficient or impractical to make consumers pay individually.
What is public good
400
When a good or service is temporarily unavailable
What is a shortage
400
Decisions about adding or subtracting one additional unit of a resource.
What is thinking at the margin
400
Means an economy is using resources in such a way as to maximize the production of goods and services.
What is efficiency
400
In this system the government make the decisions
What is centrally planned or command economy
400
This is something that is gained from another persons decision.
What is a positive extranality
500
The resources that are used to make goods or services are called factors of production. Name the three types.
What are land, labor, and Capital
500
The most desirable alternative that is giving up when a choice is made
What is opportunity cost
500
What needs to happen to push the frontier line of a PP curve into new territory
What is change technology or resources.
500
The 3 economic questions that must be answered
What is what goods and services should be produced, how should they be produced, and who consumes those goods and services?
500
This is a term that results from in kind payments and welfare where income is transferred from one individual to another.
What is redistribution
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