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Definition
| the study of how people make choices about ways to use limited resources to fulfill their wants |
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| the branch of economic theory that deals with behavior and decision making by small units such as individuals and firms |
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| the branch of economic theory dealing with the economy as a whole and decision making by large units such as governments |
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Definition
| basic economic problem that results from a combination of limited resources and unlimited wants |
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Definition
| resources of land, labor, capital, and entrepreneuship used to produce goods and services |
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Definition
| natural resources and surface land and water |
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Definition
| human effort directed towards producing goods and services |
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Definition
| tangible objects that can satisfy people's wants or needs |
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Definition
| actions that can satisfy people's wants or needs |
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Definition
| previously manufactured goods used to make other goods and services |
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Definition
| the amount of output (goods and services) that results from a given level of inputs (land, labor, capital, and entrepreneurship) |
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Definition
| when individuals take risks to develop new products and start new businesses in order to make profits |
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Definition
| the use of science to develop new products and new methods fro producing and distributing goods and services |
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Definition
| sacrificing one good or service to purchase or produce another |
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Definition
| value of the next best alternative given up for the alternative that was chosen |
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Term
| Production Possibilities Curve |
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Definition
| graph showing the maximum combinations of goods and services that can be produced from a fixed amount of resources in a given period of time |
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Term
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Definition
| the production and distribution of goods and services in a society |
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Term
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Definition
| a theory or simplified representation that helps explain and predict economic behavior in the real world |
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Term
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Definition
| an assumption involving 2 or more variables that must be tested for validity |
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