| A | B |
|---|
| tradeoff | exchanging one thing for another |
| economics | study of behavior and decisions about how to use resources to fulfill wants and needs |
| economy | activites in a society that affect production and distribution of goods and services |
| scaricity | unlimited needs and wants with limited resources |
| technology | factor of production that uses advanced knowledge leading to better goods and services and efficent production and distribution of goods and services |
| shortage | temporary severe limit on a resource |
| labor | one of the factors of production that refers to human resources - effort, creativity and skills to producing goods and services |
| macroeconomics | study of behavior of large units of society like governments, cultures |
| microeconomics | study of behaviors of small units of society like businesses, families and individuals |
| economic model | a theory or representation that explains and predicts economic behavior in the real world |
| economic theory | use of theories, hypothesis and data to solve problems and predict behavior |
| capital | a factor of production that uses goods and resources to produce and distribute other goods and services |
| production possiblity curve | a graph that shows maximium combinations of goods and services that can be produced from a fixed set of resources in a given period of time |
| service | intangible actions that satisfy needs and wants |
| goods | tangible things that satisfy needs and wants |
| needs | basic physical requirements of survival- food, safety, shelter, clothing |
| wants | things desired to fulfill wishes beyond basic needs |
| land | a factor of production that includes all natural resources, not man made. ex: soil, air, water, plants, animals |
| entrepenuership | a factor of production that includes people who are willing to the risks of providing goods and services to fulfill the needs and wants of others. |
| opportunity cost | the value of the next best alternative that had to be given up to do the chosen action |
