Factors of Production
refers to all natural resources used to produce a good or a service
land
what does ppc stand for
production possibilities curve
Financial gain that a seller makes from a business transaction
profit
Methods used to encourage people to take certain actions
Incentives
Which European explorer discovered a passage that connects the Pacific and Atlantic oceans?
Magellan
all the human effort used to produce goods and services
labor
what does ppf stand for
production possibilities frontier
who owns the resources in communism
the government
The alternative people give up when they make choices
trade offs
In 1863, what memorable speech did Abraham Lincoln give during the dedication of the Soldiers’ National Cemetery?
The Gettysburg Address
what workers invest in
human capital
point on the curve=
efficient
who owns the resources in a market economy
the people / they are privately owned
The value of something that is given up to get something else that is wanted
opportunity cost
The “Treaty of Paris” ended which war?
The revolutionary war
what businesses invest in
physical capital
point inside the curve=
inefficient
Trade in which both traders believe that what they are getting is worth more than what they are giving up
Voluntary Exchange
The additional cost of using one more unit of a product
Who was the youngest U.S. president?
Theodore Roosevelt
involves the vision, skills, and risk taking needed to create and run a business
entrepreneurship
point outside the curve=
impossible or unattainable
A situation in which people concentrate their efforts in the activities that they do best & earning money in “jobs”
specialization
The additional satisfaction from using one more unit of a product
marginal benefit
What year did World War I begin?
1914