Term
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Definition
| something essential for survival |
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Term
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Definition
| something that people desire but that is not necessary for survival |
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Term
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Definition
| the physical objects that someone produces |
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Term
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Definition
| the actions or activities that one person preforms for another |
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Term
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Definition
| the principle that limited amounts of goods and services are available to meet unlimited wants |
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Term
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Definition
| the study of how people seek to satisfy their needs and wants by making choices |
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Term
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Definition
| a situation in which consumers want more of a good or service than producers are willing to make available at a particular price |
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Term
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Definition
| a person who decides how to combine resources to create goods and services |
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Term
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Definition
| the resources that are used to make goods and services |
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Term
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Definition
| all natural resources used to produce goods and services |
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Term
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Definition
| the effort people devote to tasks for which they are paid |
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Term
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Definition
| any human-made resource that is used to produce other goods and services |
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Term
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Definition
| the human-made objects used to create other goods and services |
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Term
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Definition
| the knowledge and skills a worker gains through education and experience |
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Term
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Definition
| a phrase expressing the idea that a country that decides to produce more military goods ("guns") has fewer resources to produce consumer goods ("butter") and vice versa |
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Term
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Definition
| the most desirable alternative given up as the result of a conclusion |
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Term
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Definition
| the process of deciding whether to do or use one additional unit of some resource |
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Term
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Definition
| a decision-making process in which you compare what you will sacrifice and gain by a specific action |
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Term
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Definition
| the extra cost of adding one unit |
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Term
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Definition
| the extra benefit of adding one unit |
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Term
| production possibilities curve |
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Definition
| a graph that shows alternative ways to use an economy's productive resources |
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Term
| production possibilities frontier |
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Definition
| a line on a production possibilities curve that shows the maximum possible output an economy can produce |
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Term
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Definition
| the use of resources in such a way as to maximize the output of goods and services |
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Term
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Definition
| the use of fewer resources than the economy is capable of using |
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Term
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Definition
| an economic principle which states that as production shifts from making one good or service to another, more and more resources are needed to increase production of the second good or service |
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