Economics Study Guide

The fundamental economic problem facing all societies that results from a combination of scarce resources and people’s virtually unlimited wants.

• Scarcity
• Need
• Utility
• Value

The productive resources that make up the four categories of land, capital, labor, and entrepreneurship

• Profit
• Capital Good
• Factors of Production
• Product Market

A risk-taking individual in search of profits; one of the four factors of production

• Land
• Capital
• Labor
• Entrepreneur

Alternatives that must be given up when one is chosen rather than another

• Capital Goods
• Wealth
• Trade-offs
• Factor Markets

The cost of the next best alternative use of money, time, or resources when one choice is made rather than another

• Diminishing marginal utility
• Gross Domestic Produst
• Free Trade
• Opportunity Cost

An economic and political system in which factors of production are collectively owned and directed by the state; theoretically classless society in which everyone works for the common good

• Communism
• Capitalism
• Socialism
• Moneyball

An economic system in which private citizens own and use the factors of production in order to generate profits

• Communism
• Capitalism
• Socialism
• Moneyball

An economic system in which government owns some factors of production and has a role in determining what and how goods are produced

• Communism
• Capitalism
• Socialism
• Moneyball

Economics is the study of how people (including countries and companies), make __________ regarding the buying, selling, using, and distributing of things in the face of scarcity

• Profits
• Supplies
• Products
• Choices

A _________ refers to work done for other people

• Debt
• Good
• Service
• Demand