condition that arises because society does not have enough resources to produce all the things people would like to have.
driving force that encourages people and organizations to improve their material well-being.
basic requirements for survival.
an arrangement that allows buyers and sellers to come together to exchange goods and services.
factor of production that involves risk-takers in search of profits.
factor of production that includes the tools, equipment, and factories used in the production of goods and services.
factor of production that includes people and their efforts, abilities, and skills.
factor of production that includes all natural resources.
economic system in which private citizens own the factors of production.
economic system in which free economic activity is subject to some government intervention and regulation.
concept that the consumer is the ruler of the market.
concept that people have the right to control their possessions.
an organized way of providing for wants and needs of a society.
economic system in which basic economic systems are made by a central authority.
economic system in which basic economic activity stems from ritual, habit, or custom.
economic system in which basic economic decisions are made by people and firms acting in their own best interests.
means of expressing needs.
works that are performed for someone.
the cost of the next best alternative when a choice is made.
Production possibilities frontier
diagram representing carious combinations of goods and services an economy can produce when all resources are fully employed.
an alternative choice.
a toll that can bee used to help make an economic decision by identifying alternatives and criteria to evaluate the alternatives.
Guns and butter
the classic example used to illustrate opportunity costs along the production possibilities frontier.
part of economics that deals with behavior and decision making of small units.
graph that shows the quantity demanded at all possible prices at a given time.
desire, ability, and willingness to buy a product,
Desire to won a product
common view of demand.
listing that shows the quantity demanded at all possible prices at a given time.
listing of quantities that would bee offered for sale at all possible prices that could prevail in a market.
a government payment to an individual, business, or other group to encourage or protect a certain type of economic activity.
way in which quantity supplied changes in response to a change in price.
amount that producers bring to market at any one price.