Economic Decision Making
Terms in this set (16)
Items purchased to satisfy needs and wants
Actions or activities that one person performs for another
A situation in which unlimited wants exceed the limited resources available to fulfill those wants
A situation in which quantity demanded is greater than quantity supplied
A person who organizes, manages, and takes on the risks of a business.
Factors of Production
Land, labor, and capital; the three groups of resources that are used to make all goods and services
an alternative that we sacrifice when we make a decision
Cost of the next best alternative use of money, time, or resources when one choice is made rather than another
the exchange of goods and services among nations
The ability of a country to produce a good at a lower cost than another country can.
the ability of an individual, a firm, or a country to produce more of a good or service than competitors, using the same amount of resources
bring (goods or services) into a country from abroad for sale.
A good or service produced in the home country and sold in another country.
A government tax on imports or exports
the movement of goods and services among nations without political or economic barriers
the alternative combinations of final goods and services that could be produced in a given period with all available resources and technology