Unit 1 Fundamentals

The study of how people seek to satisfy their needs and wants by making decisions

• Economics

• Fiscal Policy

• Cooperative

• Free Trade

The principle that limited amounts of goods and services are available to meet unlimited wants.

• Price Ceiling

• Scarcity

• Money Supply

• Price Level

The most desirable alternative given up as a the result of a decision.

• Trade off

• Options

• Opportunity Cost

• Allocation

All options given up when a choice is made.

• Cost

• Capital

• Allocation

• Tradeoffs

Factors of Production

• Land, Labor, Capital, Entrepreneur

• Land, Labor, Cost

• Human Capital and Physical Capital

• Land, Labor, Entrepreneur

A person who decides to combine productive resources to create a good or service

• Economist

• Socialism

• Entrepreneur

• Specialization

The process of distributing resources, goods, and services.

• Scarcity

• Wants

• Trade Offs

• Allocation

A graph that shows alternative ways to use a country's productive resources.

• Supply and Demand Graph

• Production Possibilities Curve

• Law of Increasing Cost

• Under-utilization Chart

An economic principle which states that as production shifts from making one good or service to another, more resources are needed to increase production of the second good or service.

• Law of Demand

• Law of Supply

• Law of the land

• Law of Increasing Cost

A situation in which consumers want more of a good or service than producers are willing to make available at a particular price.

• Shortage

• Surplus

• Scarcity

• Availability