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Details Title: Unit 1 Chapter 1 Description: Fundamental Economic Concepts Total Flash Cards: 14 Created: 08/21/2007 18:35:22	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term This is created by people's seemingly unlimited wants and relatively limited resources. Definition Scarcity Term The Three Basic economic questions are... Definition For whom, how, and what to produce. Term The four factors of production are... Definition Labor, Land, Entrepreneurs, and Capital Term They use goods and services to satisfy wants and needs. Definition Consumers Term These link buyers and sellers in the circular flow of economic activity. Definition Markets Term Next best alternative - or trade-off- in a decision Definition Opportunity Cost Term A model that shows the various possible combinations of output that can be produced when all the resources are fully employed Definition Production Possibilities Frontier Term A way of thinking about a problem that compares the cost of an action to the benefits received Definition Cost-benefit Analysis Term Provides insight as to how incomes are earned and spent, how jobs are created, and how the economy works on a daily basis Definition Study of economics Term alternative choices Definition trade-offs Term Where consumers are privately owned businesses answer the three basic economic questions Definition free enterprise economy Term the quality of life based on the possession of the necessities and luxuries that make life easier Definition standard of living Term What best describes the relationship between trade offs and opportunity costs? Definition Opportunity costs are incurred when trade-offs are made Term You buy a soccer ball for $25. What is the opportunity cost of your decision? Definition Something else you could have bought.