| A | B |
|---|
| Scarcity | condition that results from society not having enough resources to produce all the things people would like to have |
| Need | a basic requirement for survival |
| Land | factor of production that includes natural resources |
| Capital | factor of production that includes tools |
| Gross Domestic Product | dollar value of all final goods |
| good | an item that is economically useful or satisfies an economic want |
| service | work that is performed for someone |
| market | location or other mechanism that allows buyers and sellers to exchange a certain economic product |
| productivity | a measure of the amount of output produced by a given amount of inputs in a specific period of time |
| human capital | the sum of the skills |
| opportunity cost | the cost of the next best alternative when a choice is made |
| production possibilities frontier | diagram representing various combinations of goods and services an economy can produce when all resources are fully employed |
| trade-offs | alternative choices |
| free enterprise economy | where consumers and privately owned businesses answer the three basic economic questions |
| standard of living | the quality of life based on the possession of the necessities and luxuries that make life easier |
