the study of choices people make when faced with scarcity
What is economics?
limted resources for unlimited wants
What is scarcity?
not enough of a product to meet demand at a given price
What is shortage?
things we cannot do without
What are needs?
things we desire
What are wants?
True or false: Are our wants unlimited?
land, labor, and capital
What are the three factors of production?
What is land?
What is labor?
any human made resource
What is capital?
Who combines the factors of production to make a product?
What is the most desirable alternative you must give up as a result of a decision called?
What are the things called that we have to give up to in order to get/do/make something else?
one more ot one fewer unit of something
What is the margin?
guns and butter
What do we call it when countries devote resources to the military that must give up resources that could be used for food or vise versa?
the cost of producing one more or one fewer units
What is marginal cost?
What are the arrangements that allow people to buy and sell goods and service?
Economics think on the -------.
Production Possibilities Curve
What do we call the graph that shows the alternative ways to use recources?
production possibilities frontier
What is the line called on the graph called?
shows efficiency(maximum use of resources), shows growth, and shows costs(what is given up)
What is the importance of Production Possibilities Curve?
because we have limited resources but unlimited wnats
Why do we make choices?
What are all the human-made goods that are used to produce other goods and services called?
What are all the skills and knowledge gained by a worker through education and experience called?