Economics Unit 1

Front

What is the study of how people make choices to use limited resources to meet their wants and needs?

Back

Economics

Front

What are things we would like to have but can live without?

Back

Wants

Front

What are things we must have to survive, like food, water, and shelter?

Back

Needs

Front

What is the basic problem that resources are limited, but our wants are unlimited?

Back

Scarcity

Front

What are the resources used to make goods and services?

Back

Factors of production

Front

What are tools, machines, and buildings used to produce goods and services called?

Back

Capital

Front

What are rewards or punishments that influence people’s choices called?

Back

Incentives

Front

When you make a choice, what is EVERYTHING you give up called?

Back

Trade-off

Front

What is the value of the next best thing you give up when you make a choice?

Back

Opportunity cost

Front

What is a cost that has already been paid and cannot be recovered called?

Back

Sunk cost