Vocab Words
The use of resources in such a way as to maximize the output of goods and services.
What is efficiency?
This is the abbreviation for Gross Domestic Product.
What is GDP?
The extra cost of adding one unit.
What is marginal cost?
People who decide to combine resources to create new goods and services.
Who are entrepreneurs?
As production shifts from one item to another, more and more resources are necessary to increase production of the second item.
What is the law of increasing costs?
Thinking to yourself, is college worth the incredible student loan debt that I am setting myself up for.
What is opportunity cost?
The extra benefit of adding one said unit.
What is the marginal benefit?
The three factors of production would include.
What are land, labor, and capital?
The amount of money a business receives over its expenses.
What is profit?
As a business, when you decide how much more or less to do. Should we cut hours here to save money there.
What is thinking at the margin?
Give me two examples of wants.
What is (ex.)?
This is the Biblical principle we discussed on wants vs. needs.
What is Exodus 20:17?
The income people receive in return for supplying factors of production.
What are factor payments?
A county decides to put more money into its police force instead of fixing the potholes on a major highway that have caused at least 12 flat tires.
What is guns or butter?
The act of giving up one benefit to gain another, greater benefit.
What is a trade-off?
When consumers want more of a good or service than producers are willing to make available.
What is a shortage?
The structure of methods and principles a society uses to produce and distribute goods and services.
What is an economic system?
The goods and services produced, how we should produce them, and who uses these goods and services.
What are the three basic economic questions that all countries must answer?
True or False: All resources are scarce.
What is true?
Any human-made resource that is used to produce other goods and services.
What is capital?