Economics Study Guide 1

Additional satisfaction from one more unit of a product.

More goods and services are produced as time passes.

Manufactured large quantifies of standardized goods, normally through assembly line.

A rise in the overall price of goods and services.

Study of how people, businesses, governments and societies choose to use scarce resources to satisfy their wants.

Costs incurred in the production of goods.

Desires that can be satisfied by consuming a good or service.

Graph showing all different combinations of output that can be produced given current resources and technology.

All of an economy's resources are being used to their fullest extent.

Protection against economic risks, unemployment, accidents on the job, business failures, or natural disasters.

The most desirable trade-off as the result of a decision.

Natural resources found on or under the ground that are used to produce goods and services.

Studies the individual, family, and businesses in economy to focus on balancing the demand for/production of an item.

Product manufactured in a step-by-step process, adding parts in a sequential manner as it moves past workers/machines.

Reduction of the general level of prices in an economy.

Economic decision-making must be efficient so that benefits outweigh costs.

Level of material comfort as measured by the goods, services and luxuries available to people, group, or nation.

Producing fewer goods and services than possible.

Economic policy that follows our concepts of what is fair, unfair, or what should be and should not be.

Maker of goods or provider of services.

Land, labor, capital and entrepreneurship.

Involves producing the maximum amount of goods and service as possible.

Money spent for attaining something.

Decision made, or course of action taken, when faced with a set of alternatives.

Process of setting up a business using vision, ingenuity, management skills and willingness to risk business failure.

Business that provides service to customers rather than selling goods.

When there is not enough resources to satify human wants.

Human time, effort and talent that goes into making a product.

Normal business costs. Clearly defined dollar amounts.

Basic requirements for human survival.

The additional costs of using one more unit of a product.

Difference in value over a period of time between a nation's imports and exports of goods and services.

All the resources made and used by people to produce and distribute goods and services.

Person who buys or uses goods or services.

A cost that exists without the exchange of cash, represents the loss of income but does not represent a loss of profit.

Freedom of consumers to spend; workers to change jobs; people to start businesses; & savers to invest savings.

Things given up that do not involve paid income or earnings (time/risks).

Focus on what your company does best, or concentrate on only one product.

Production is slowed or stopped intentionally or unintentionally.

Achieved when there is no inflation or deflation.

Commercial service that attend to the personal needs of a customer.

Approach that weighs the benefits of an action against its costs.

Something that is paid for, but not a material object.

Objects like food, clothing and things that can be bought.

Study of behavior of the economy as a whole, including changes in unemployment, price levels, and national income.