Chapter 1: What is Economics

A graph showing the maximum combination of goods and services that can be produced

Sacrificing one good or service to purchase or produce another

A situation in which people do not have enough resources to satisfy every desire

An assumption involving two or more variables that must be tested for validity

The production and distribution of goods and services in a society

The value of the next best alternative that has to be given up for the action that is chosen is the

The ability to develop new products and start new businesses in order to make profits

The amount of output that results from a given level on inputs

The work people do

The branch of economic theory dealing with the economy as a whole

A theory that helps explain and predict economic behavior in the real world

Tangible items that people buy

Manufactured goods used to make other goods and services

A visual representation that helps explain and predict economic behavior

Activities done for a fee

A production possibilities curve helps determine

Land, labor, capital, and entrepreneurship

A company's office building are an example of

Economists build economic models to