Econ Alive Chapters 1-4 Review

Activities done for us by others.

When decisions about what, how, and for whom to produce are made by a powerful  authority.

The tools, machines, and buildings used in the production of other goods and services. 

The willingness to take the risks involved in starting a business

Large-scale manufacturing.

An approach to production in which individual workers become highly skilled at a specific task.

A political and economic system in which all property/money is owned by all members of society.

The result of using resources in a way that produces the maximum amount of goods and services

When no single person, business, or government agency—tells producers or consumers what to do.

This type of analysis, which describes how things are, is known as

What you give up to add one unit to an activity.

When we depend on other people or countries to produce many of the goods and services we want.

Both the gov't and individuals play important roles with regard to production and consumption.

The ability to perform a task at a lower opportunity cost than someone else is able to.

A measure of the output of an economy per unit of input.

The ability to make our own economic decisions without interference from the government.

This focuses on the workings of an economy as a whole.

Any arrangement that brings buyers and sellers together to do business with each other.

Political economist Adam Smith became famous for writing this book about free-market economies.

Political and economic philosophy that calls for property to be owned by society as a whole.

Economics that looks at economic decision making by individuals, households, and businesses

A simple representation of reality that allows economists to focus on the one change at a time.

Anything used to produce an economic good or a service. is called a(n)...

The value of the next best alternative that you could have chosen instead of what you did.

The direct exchange of one good or service for another.

When all who want to work can find jobs.

Puzzles or riddles that might be explained through an economic analysis are called...

All of the “gifts of nature” that are used to produce goods and services are called

In his book Smith argued that this is the key to a healthy economy.

A medium of exchange that can be traded for goods or services or used to pay debts.

This type of analysis, which focuses on how things ought to be done, is known as

Physical objects produced for sale.are called...

When there is less of a good or service available than people want at the current price.

The total value of all the things a person owns.

Because of this, there will never be enough of everything to satisfy everyone completely.

Which of the following is NOT a factor of production?

What you gain in terms of money, time, experience, or other improvements in your situation.

Whenever you choose one thing over another, you are making a 

When custom and tradition dictate what to produce, how to produce it, and for whom.

The time and effort people devote to producing goods and services for wages is called