| A | B |
|---|
| Need | something like air, food, or shelter that is necessary for survival |
| Want | an item that we desiebut tht is not essential to survival |
| Economics | the study of how people seek to satisfy their needs and wants by making choices |
| Goods | physical objects such as clothes or shoes |
| Services | actions or activities one person performs for another |
| Scarcity | limited quantities of resources to meet unlimited wants |
| Shortage | a situation in which a good or service is unavailable; demand is greater than supply |
| Factors of Production | land, labor, and capital |
| Land | physical property and natural resource |
| Labor | work |
| Capital | money or property owned or used in business |
| Physical Capital | human-made ojects used to create other goods and services |
| Human Capital | skills, knowledge brought by workers to the production process |
| Entreprenueur | one who organizes and operates a business |
| Microeconomics | the part of economics concerned with single factors and the effects of individual decisions |
| Macroeconomics | the study of the behavior and decision making of entire economics |
| Trade-off | exchange of a benefit for one more desirable |
| Guns or Butter | military or consumer goods |
| Opportunity Costs | 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 curve that shows alternative ways to use an economy's resources |
| Production Possibilities Frontier | the line on a production possibilities graph that shows the maximun possible output for a specific economy |
| Efficiency | using resources in such a way as to maximize the production of goods and services |
| Underutilization | using fewer resources than an economy is capable of using |
| Cost | what a person gives up or sacrifices when he or she makes an economic choice |
| Laws of Increasing Costs | as the productivity of a factor of production decreases due to increasin production, the cost of success the uits must increase |
