Scarcity and Choice
This permanent problem arises because resources are limited but wants are unlimited.
What is scarcity?
This economic system answers what, how, and for whom based on tradition and customs.
What is a traditional economy?
These are the four main categories that make up the inputs in production.
What are land, labor, capital, and entrepreneurship?
This term describes what you give up when you make a choice.
What is opportunity cost?
This curve shows all possible combinations of two goods an economy can produce efficiently.
What is the production possibilities curve?
This principle reminds us that every choice has a cost, even if something seems free.
What is TINSTAAFL ("There Is No Such Thing As A Free Lunch")?
In this system, the government controls production and allocation of resources.
What is a command economy?
This factor includes natural resources like forests and water
What is land?
If you spend time watching videos instead of studying, the studying you miss is called this.
What is opportunity cost?
Points inside the PPC curve represent this condition of resource use.
What is inefficient or underutilization of resources?
This term describes a temporary deficiency that can be restored, unlike scarcity.
What is a shortage?
This system relies on buyers and sellers in a marketplace to answer economic questions.
What is a market economy?
This factor refers to physical work done by humans in production.
What is labor?
This type of analysis compares additional benefits and costs when making decisions.
What is marginal analysis?
Points outside the PPC curve are considered this, given current resources.
What is unattainable or impossible?
Name one example of scarcity related to resources mentioned in the study guide.
What is time, rare metals, or money?
The most common economic system today, blending government involvement with free markets.
What is a mixed economy?
Tools, machines, and even education that increase production efficiency belong to this factor.
What is capital?
The additional benefit from consuming one more unit of a good or service is called this.
What is marginal benefit?
An increase in the labor force or better technology causes this shift in PPC.
What is an outward shift (economic growth)?
Explain how scarcity forces people and society to act.
What is by making choices and tradeoffs in allocating limited resources?
Name one historical leader associated with command economies mentioned in the study guide.
Who is Joseph Stalin or Mao Zedong?
This factor involves risk-taking and combining other factors to start a business.
What is entrepreneurship?
The point where marginal benefits equal marginal cost is known as this?
What is the utility maximizing point?
Moving from one point on the PPC to another involves this economic concept.
What is opportunity cost or making a choice?