Economics Ch 1 Economic Way of Thinking

describing economics as it ought to be not as it actually is

benefit or satisfaction gained from the use of a good or service

combination of vision, skill, willingness to take risks and start new business

the actions or activities that one person performs for another

a graph that shows alternative ways to use the economy's productive resources

the resources that are used to make goods and services

the physical objects that someone produces

decision making process- you compare what you will sacrifice and gain by a specific action

a phrase expressing the idea that a country that has more military goods has less money 4 goods

Everything has a cost

study of the behavior of the economy as a whole (inflation, unemployment, ect)

the effort people devote to tasks for which they are paid

something that people desire but that is not necessary for survival

the use of fewer resources than an economy is capable of using

the principle that limited amounts of goods and services are available to meet unlimited wants

the act of giving up one benefit in order to gain another, greater benefit

the use of resources in such a way as to maximize the output of goods and services

all natural resources used to produce goods and services

study of the behavior of individuals in the economy

The three economic questions that must be answered-

benefits offered to encourage people to act in certain ways

production shifts from making 1 good /service more resources R needed 2 increase production

the extra benefit of adding one unit

the extra cost of producing one unit

Person who makes goods or provides services

Describing economics as it is not as it should be

any human-made resource that is used to produce other goods and services

the study of how people seek to satisfy their needs and wants by making choices

the most desirable alternative given up as the result of a decision

something essential for survival

Person who buys goods and services for personal use