Econ Ch1.Vocab+ more

Question Answer
Study of individuals, families, businesses, and societies use of limited resources to fulfill their unlimited wants. Economics
The need to make choices arises from the ______ of resources; basic problem of economics and it's temporary, it will always exist. Scarcity
Resources needed to make goods and services. Factors of Production
Natural resources present without human invention Land
Work people do producing goods and services Labor
Activities done for others for a fee, such as veterinary care Services
Ability of taking risk-taking individuals to start new businesses Entrepreneurship
Any use of land, labor, and capital that produces goods and services more efficiently Technology
When people use their resources in one way, and not another. They are forced to makea?¦ Trade offs
The value of the next best alternative that has to be given up to do an action that is chosen Opportunity cost
Economists formulate theories calleda?¦ Economic Models
An educated guess Hypothesis
Focuses on behaviors and decisions making on a smaller scale, individuals and films Microeconomics
Deals with economy as a whole and decision making by large units such as government Macroeconomics
Name the 'Factors of Production' Land
Labor
Capital
Entrepreneurship
What do the 'Factors of Production' produce? Goods
Services
Changing one thing for another Trade-offs
Production and distribution of good and services in a society Economy
Focus on a specific aspect of society they create theories, and use theories to create economic models Economists
These models represent theories, people use them for decisions/opinions Economic models
These demonstrate maximum combinations of goods and services that can be produced from a fixed set of resources in a specific amount of time, they also help businesses determine how much of given product to produce Production possibilities curve
What does a production possibility curve reveal? It reveals an understanding of trade-offs and opportunity costs
Tangible items that people can buy, such as medicine, clothing, or computers Goods
The manufactured goods used to make other goods and produce other services Capital
The amount of output (goods and services) that results from a given level of inputs (land, labor, capital, and entrepreneurship) Productivity

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