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| This is created by people's seemingly unlimited wants and relatively limited resources. |
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| The Three Basic economic questions are... |
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Definition
| For whom, how, and what to produce. |
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| The four factors of production are... |
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Definition
| Labor, Land, Entrepreneurs, and Capital |
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Term
| They use goods and services to satisfy wants and needs. |
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Term
| These link buyers and sellers in the circular flow of economic activity. |
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| Next best alternative - or trade-off- in a decision |
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| A model that shows the various possible combinations of output that can be produced when all the resources are fully employed |
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Definition
| Production Possibilities Frontier |
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Term
| A way of thinking about a problem that compares the cost of an action to the benefits received |
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| Provides insight as to how incomes are earned and spent, how jobs are created, and how the economy works on a daily basis |
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| Where consumers are privately owned businesses answer the three basic economic questions |
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Term
| the quality of life based on the possession of the necessities and luxuries that make life easier |
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Term
| What best describes the relationship between trade offs and opportunity costs? |
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Definition
| Opportunity costs are incurred when trade-offs are made |
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Term
| You buy a soccer ball for $25. What is the opportunity cost of your decision? |
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Definition
| Something else you could have bought. |
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