Economics - Unit 1 Vocab

Front

Condition from insufficient resources to meet desires.

Back

scarcity

Front

Basic survival requirement

Back

need

Front

Factor of production: natural resources not created by humans

Back

land

Front

Factor of production involving risk takers for profit

Back

entrepreneur

Front

Factor of production: tools, equipment, machinery, and factories used in production.

Back

capital

Front

Alternative choices: trade-offs, free enterprise economy, standard of living, opportunity cost, production possibilities frontier.

Back

trade-offs

Front

Where consumers and businesses answer basic economic questions

Back

free enterprise economy

Front

Quality of life based on necessities and luxuries.

Back

standard of living

Front

Cost of the next best alternative when a choice is made

Back

opportunity cost

Front

Diagram of combinations of goods/services an economy can produce with full resource employment

Back

production possibilities frontier