Back to Basics
A requirement for survival, such as food, clothing, and shelter
What is a need?
Fixed costs plus variable costs
What is total cost?
A theory that tries to explain human economic behavior
What is an economic model?
Economic system in the United States
What is capitalism?
Economic model that compares the marginal costs and marginal benefits of a decision
What is a cost-benefit analysis?
The things available to us, such as labor, tools, materials, energy, time and capital, that are used in making goods and providing services
What are resources?
Costs or expenses that change with the number of items produced
What is variable cost?
The study of how individuals and nations make choices about ways to use scarce resources to fulfill their needs and wants
What is economics?
Natural resources, labor, capital, and entrepreneurs
What are the factors of production?
What to produce? How to produce? For whom to produce?
What are the three basic economic questions?
The alternative you face if you decide to do one thing rather than another
What is a trade-off?
The cost of producing one additional unit
What is marginal cost?
A way of producing the things a country's people need and want
What is an economic system?
Things consumers purchase to use
What are final goods?
This economic model help answer the question of what to produce
What is a cost-benefit analysis?
Something we would like to have but is not necessary for survival
What is a want?
Costs or expenses that are the same no matter how many units of a good are produced
What is fixed cost?
The study of the economy as a whole
What is macroeconomics?
The parts and supplies needed to produce final goods
What are intermediate goods?
The additional or extra benefit associated with an action
What is marginal benefit?
Not having enough resources to produce all of the things we would like to have or need
What is scarcity?
The cost of the next best alternative use of money, time, or resources when one choice is made rather than another
What is opportunity cost?
The study of the economic behavior of individuals
What is microeconomics?
Total dollar value of all final goods and services produced in a country during a single year
What is the Gross Domestic Product (GDP)?
This action requires you to pay an opportunity cost
What is a trade-off?