Chpt 1 Econ Vocab
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Chpt 1 Econ Vocab
Chpt1 Econ Vocab
Words and definitions for chapter 1 Econ Vocab Quiz.
Something like air, food, or shelter that is necessary for survival.
An item that we desire but that is not essential to survival.
The study of how people seek to satisfy their needs and wants by making choices.
Physical objects such as clothes or shoes.
Actions or activities that one person performs for another.
Limited quantities of resources to meet unlimited wants.
A situation in which a good or service is unavailable.
Factors of Production
Land, labor, and capital; the three groups of resources that are used to make all goods and services.
Natural resources that are used to make goods and services.
The effort that people devote to a task for which they are paid.
Any human resource that is used to create other goods and services.
All human-made goods that are used to produce other goods and services; tools and buildings.
The skills and knowledge gained by a worker through education and experience.
Ambitious leader who combines land, labor, and capital to create and market new goods and services.
An alternative that we sacrifice when we make a decision.
Guns or Butter
A phrase that refers to the trade-offs that nations face when choosing whether to produce more or less military or consumer goods.
The most desirable alternative given up as the result of a decision.
Thinking at the Margin
Deciding whether to do or use one additional unit of some resource.
Production Possibilities Curve
A graph that shows alternative ways to use an economy's resources.
Production Possibilities Frontier
The line on a production possibilities graph that shows the maximum possible output.
Using resources in such a way as to maximize the production of goods and services.
Using fewer resources than an economy is capable of using.
To an economist, the alternative that is given up because of a decision.
Law of Increasing Costs
Law that states that as we shift factors of production from making one good or service to another, the cost of producing the second item increases.