| A | B |
|---|
| economics | study of how people make choices about use resources to satify their wants & needs |
| scarcity | condition that occurs when wants are greater than the resources to satisfy them |
| factors of production | resources used to produce goods & services |
| land | surface land & water & natural resources that each contain |
| labor | the human effort that is required to produce goods & services |
| capital | manufactured goods that are used to produce other goods or services |
| productivity | amount of goods and services that results from the use of a set amount of resources |
| entrepreneurship | ability of risk-taking individuals to start new businesses or develop new products and processes in hopes of making profits larger |
| technology | advances in knowledge that lead to new/improved goods & services & better ways of producing them |
| trade-off | sacrificing 1 good or service to purchase or produce another |
| opportunity cost | value of the second-best choice that is given up when the first choice is chosen |
| prod. possibilies curve | a graph that shows the greatest combination of goods and services that can be produced from a specific amt. of resourse in a set period of time |
| economics | all activities that are part of the production and distribution of goods and services in a society |
| economic model | simplified representation to explain & predicit economic behavior in the real world |
| hypothesis | an educated guess or prediction that is based on known facts and which must be tested to determine if it is true |
| shortage | a TEMPORARY situation that occurs when resources are temporarily unavailable |
