Foundations of Economics

A change in the quality or quantity of resources available for production can cause a shift in

Freedom from government intervention in the production/distribution of goods and services

A punishment that makes you not want to do something

Combination of two or more economic systems (usually command and market)

Decreasing inputs & maintaining or increasing outputs shows an increase in

The next best alternative given up when an individual/business/country makes a choice

Improves quality and lowers costs; occurs as a result of economic rights

A reward that makes you want to do something

Relies on habits/customs/rituals; little room for innovation; based on family & gender lines; low standard of living

Man-made tools, items used to make other products

Concentration of productive efforts of individuals/firms on a limited number of activities (division of labor)

Government regulates economy; profit motive, consumer sovereignty, and competition absent from system

Looks at the relationship between input and output

Risk taking, business owning resource

Making the most of resources

People choose which contracts to enter

Assurance that goods/services will be available, payments will be made, individuals are protected from econ. disaster

Incentive motivating people/businesses to participate in economy; encourages innovation, growth, productivity

People decide what to buy and sell

All man-made resources

Innovation leads to ___, which leads to higher standard of living

Fair distribution of wealth

In Economics, this term means "one more"

People control their possessions as they wish

Unlimited wants and needs and limited resources (desirable, limited) creates

All resources that come from the earth

Everyone has the same legal rights

Economic system driven by profit motive, consumer sovereignty, and competition; no government regulation

Concept that anyone can compete in the marketplace; social mobility

Education and training