SCARCITY
Something essential for survival
What is a NEED
The act of giving up one benefit in order to gain another, greater benefit.
What is a TRADE-OFF
A graph that shows alternative ways to use an economy’s productive resources.
What is a PRODUCTION POSSIBILITIES CURVE
The term that refers to all natural resources used to produce goods and services
What is LAND
The study of how people seek to satisfy their needs and wants by making choices.
What is ECONOMICS
Actions or activities that one person performs for another.
What are SERVICES
The term used to describe one of the common choices facing governments: the choice between spending money on military or domestic needs.
What is GUNS OR BUTTER
The line on the production possibilities curve, that shows combinations of the production of two products, where any spot on that line represents a point at which a company is using all of its resources to produce a maximum combination of those two products.
What is the PRODUCTION POSSIBILITIES FRONTIER
The effort people devote to tasks for which they are paid.
What is LABOR
When consumers want more of a good or service than producers are willing to make available at a particular price.
What is SHORTAGE
Something that we desire but that is not necessary for survival, such as video games or stylish haircuts.
What is a WANT
The most desirable alternative somebody gives up as the result of a decision
What is OPPORTUNITY COST
The use of resources in such a way as to maximize the output of goods and services.
What is EFFICIENCY
The term that refers to any human-made resource that is used to produce other goods and services.
What is CAPITAL
The extra benefit or cost of adding the same unit, as long
What is MARGINAL BENEFIT OR COST
Physical objects that someone produces, such as food, clothing, or video games.
What are GOODS
Raw materials and substances occurring in nature that are used for economic production, consumption, and growth.
What are natural resources?
The use of fewer resources than the economy is capable of using.
What is UNDERUTILIZATION
Human-made objects used to create other goods and services
What is PHYSICAL CAPITAL
People who decide how to combine resources to create new goods and services.
What is an ENTREPRENEUR
The fact that limited amounts of goods and services are available to meet unlimited wants is called
What is SCARCITY
Decision makers have to compare the opportunity what they will sacrifice and what they will gain. This decision-making process is sometimes called
What is a COST/BENEFIT ANALYSIS
This principle states that as production shifts from making one item to another, more and more resources are necessary to increase production of the second item.
What is THE LAW OF INCREASING COSTS
The knowledge and skills a worker gains through education and experience
What is HUMAN CAPITAL
The resources used to make all goods and services.
What is FACTORS OF PRODUCTION