Economics - Unit 1

physical objects that someone produces, such as food, clothing, or video games

actions or activities that one person performs for others, such as medical care or haircuts

limited amounts of goods or services are available to meet unlimited wants

study of how people seek to satisfy their wants and needs by making choices.

resources used to make all goods and services; land, labor, capital, entrepreneurship

includes all the natural resources found in nature

refers to the physical and mental efforts that people contribute to the production of goods and services

are the human made goods that can be used as resources for further production.

the special talent that some people have for searching out and taking advantage of new business opportunities and for developing new products and new ways of doing things

act of giving up one benefit in order to gain another, greater benefit

The second most desirable alternative somebody gives up when making a choice.

when decision makers compare the sacrifices and gains of a choice.

the cost when adding one more unit, such as sleeping one more hour or doing more homework.

graph that shows alternative ways to use an economy’s productive resources.

use of resources in a way that maximizes the output of goods and services.

structure of methods and principles a society uses to produce and distribute goods and services.

relies on habit, custom or ritual to answer the three economic questions.

any arrangement that allows buyers and sellers to exchange goods and services.

concentration of the productive efforts of individuals and businesses on a limited number of activities.

the hope for reward or fear of penalty that encourages a person to behave in a certain way.

struggle among producers for the money of consumers.

the central government owns and controls all resources and means of production.

not a single economic system but a range of economic and political systems based on the belief that wealth should be divided more equally.

economic system that has some market-based elements and some government involvement; blend of capitalism and socialism.

shared good or service for which it would be impractical to make consumers pay individually or exclude those who didn’t pay.

part of the economy that involves transactions of the government

part of the economy that involves transactions between individuals and businesses

maximizing individuals’ opportunity to make their own choices

reducing uncertainty. People want to know that the goods and services they want will be available when they want them.  It also means knowing that help (especially from government) is available if people are in need.

the idea that economic systems are fair.  Different societies and individuals within societies define fairness in different ways.

increasing the amount of goods and services a country can produce.