Unit 1 Vocab Flashcard

Front

Fundamental problem of every society?

Back

Scarcity

Front

Scarcity:

Back

Unlimited wants vs. limited resources.

Front

Cost of the next best alternative use of money, time, or resources when one choice is made.

Back

Opportunity Cost

Front

Economic situation of giving up one thing for another due to opportunity cost.

Back

trade offs

Front

Investment losing potential.

Back

risk

Front

Land, Labor, Capital, and Entrepreneurship

Back

Factors of Production

Front

People who combine land, labor, and capital to create goods and services.

Back

Entrepreneurs

Front

A tool or equipment used to produce other goods.

Back

capital good

Front

Term for a finished product used for personal use.

Back

consumer good

Front

Process of separating production tasks and assigning them to different workers.

Back

division of labor