| A | B |
|---|
| the number one economic problem facing individuals and nations | scarcity |
| Land, Labor, Capital, Entrepreneurship | Means/factors of Production |
| The three criteria for scarcity | be desirable, be limited, have more than one use |
| Give examples of scarcity | water, oil, trash collection... |
| The that you give up to get the thing that you want | Opportunity Cost |
| The economic system where government officials make the decisions about what is produced and how it's produced | Command |
| The economic system where individuals and businesses make the decisions about what is produced, how it is produced, and who gets it | Market |
| The economic situation where both parties expect to benefit from trade | Voluntary Exchange |
| All physical and mental talents of available workers for use in production process are known as | Labor |
| All manufactured aids that help in the production process are known as | Capital |
| The future production possibilities when resources may be increased or technology allows for their expansion, but today is not possible is known as | Expanding frontier |
| Obtaining more of a good in equal amounts requires giving up even larger amounts of the alternative good is | Law of increasing opportunity cost |
| Unemployed resources or resources used inefficiently is known as | Inside frontier |
| What is the name of the diagram that shows us all possible combinations of uses of our resources? | Production Possibility Curve |
