| A | B |
|---|
| economics | the study of how individuals and societies make choices about ways to use scarce resources to fulfill their needs and wants |
| scarcity | people do nto ahve neough cnad cannot have enough income, time, and other resouirces to satisfy their every want |
| scarcity | condition of not being able to have all of the goods and services one wants |
| factors of production | resources of land, labor, capital, and entrepreneurship used to produce goods and services |
| factors of production | resources needed to produce goods and services |
| land | natural resources and surface land and water |
| labor | natural resources and surface land and water |
| labor | human effort directed toward producing goods and services |
| goods | tangible objects that can satisfy people's wants |
| services | actions that can satisfy people |
| capital | previously manufactured goods used to make other goods and services |
| capital | the manufactured goods used to make other goods and services |
| productivity | the amount of output (goods and services) that results from the given level of inputs (land, labor, capital) |
| productivity | the ability to produce greater quantities of goods and servies in better and faster ways |
| entrepreneurship | ability of restaking individuals to develop new peroducts + start bus. in order to make profits |
| technology | advance in knowledge leading to new and improved goods and services and better ways of producing them |
| trade-off | sacrificing one good or service to purchase or produce another |
| opportunity cost | calue of the next best alternative given up for the alternative that was chosen |
| opportunity cost | the value of the next best alternative that had to be given up to do the action that was chosen |
| production possibilites curve | graph showinghte maximum combos of goods and services that can be produced form a fixed amouint of resources in a given periopld of time |
| microelectrics | the branch of economic hteory that deals w/behavior + decision making by small units such as individuals and firms |
| macroeconomics | the nach of economic theory dealign with the econdomy as a whole and decision making by large units such as governments |
| economy | the productgs and distribution of goods and services in a society |
| economic model | a theory or simplified representation that helps explain and predict economic behavior in the real world |
