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Economics 1

Terms in this set (25)

Categories or specific goods or services to be compared
On the horizontal & vertical axes
Range of choices in the combination of goods and services produced
Points plotted on the graphs
Production possibilities frontier
Line or curve that connects both points
An economy working at its most efficient production levels
On the frontier line or curve itself
An economy working below its most efficient production levels
Inside, underneath, or left of curve
Future production possibilities frontier if more land, labor, or capital resources become available
Will move to the right or outward
Production possibilities CURVE
Graph that shows alternative ways to use or economic resources
Production possibilities FRONTIER
line/ curve on the graph that shows maximum out-put
Efficiency
Using our resources to maximize the output of goods + services
Underutilization
Using fewer resources than capable of
People must make choices to satisfy their needs and wants
Goods + services are limited which is scarce
Scarcity always exists
Scarcity is the basic condition of all economics
Physical capital is an important factor of production
Saves time + moneu
All goods and services scarce
Our resources are limited; but our wants + needs are unlimited
Entrepreneurs are important to the production of goods + services
Entrepreneurs bring together land, labor, & capital
Labor
Paid effort for a task
Service
An action one performs for another
Shortage
Temporary act for one or more goods
(Temporary)
Human capital
Knowledge, skill, and experience of our workers
The study of how people seek to meet their needs and wants by making choices is
Economics
Persons who perform such as actions as cutting hair or teaching school are providing
Services
When producers will not or cannot offer goods + services at current prices, a _________ appears
Shortage
Land, labor, and capital make up the
Factors of production
When people make resources for producing other goods and services they are creating
Capital
The two categories of capital are physical and
Human capital
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