Scarcity and the Science of Economics
Tool, equipment, or other manufactured good used to produce other goods and services; a factor of production ...
Answer: capital good.
Risk-taking individuals who introduce new products or services in search of profits; one of the four factors of production ...
Answer: entrepreneurs.
Increase in a nation’s total output of goods and services over time ...
Answer: economic growth.
Fundamental economic problem facing all societies resulting from a combination of scarce resources and people’s virtually unlimited needs and wants ...
Answer: scarcity.
Productive resources needed to produce goods; the four factors are land, capital, labor, and entrepreneurship ...
Answer: factors of production.
Quality of life based on ownership of necessities and luxuries that make life easier ...
Answer: standard of living.
Monetary value of all final goods, services, and structures produced within a country’s national borders during a one-year period ...
Answer: gross domestic product (GDP).
People with all their abilities and efforts; one of the four factors of production; does not include the entrepreneur ...
Answer: labor.
Mutual dependence of the economic activities of one person, company, region, or nation on those of another person, company, region, or nation ...
Answer: economic interdependence.
Item that wears out or lasts for fewer than three years when used regularly ...
Answer: nondurable good.
Diagram representing all possible combinations of goods and/or services an economy can produce when all productive resources are fully employed ...
Answer: production possibilities curve.
Division of work into a number of separate tasks to be performed by different workers; same as specialization ...
Answer: division of labor.
Apparent contradiction between the high value of a nonessential item and the low value of an essential item ...
Answer: paradox of value.
Cost of the next best alternative use of money, time, or resources, when one choice is made rather than another ...
Answer: opportunity cost.
Comparison of the cost of an action to its benefits ...
Answer: cost-benefit analysis.