Unit 1 Econ Review

Buyers and sellers are meeting to exchange goods and services with no government intervention in a __________

This is the part of the economy that is controlled by the government

The additional cost of a specific course of action; this includes both monetary and non-monetary costs.

Goods produced for direct consumption such as pizzas and cookies

The effort that people contribute to the production of goods and services

This is a statement based on facts and not someones opinion.

A person who innovates by combining the factors of production - land, labor, and capital - to earn a profit

An economic system without government involvement and individuals own resources and answer the three economic questions

A system with free markets but some government intervention

The study of choices based on scarcity

Utility is _________________

This is the "out of pocket" costs associated with making a decision

The concept that unintended social benefits arise from individuals acting in their own self interest is known as this

Individuals are influenced by ___________ which motivate them and encourage them to do things

The idea that we all have unlimited wants but limited resources is called

Economists assume that everyone acts in their own ___________ by analyzing the benefits and costs of their decisions

________________ is when buyers and sellers willingly engage in a mutually beneficial transaction.

In this type of economy government owns all the resources and answers the three economic questions.

Someone that benefits from a service yet does not pay for the service

Part of the economy that is controlled by individuals and companies

Economic system that relies on custom, history, and time-honored beliefs.

ALL the alternatives that we give up when we make a choice.

The study of the large economy as a whole.

The tools, machinery, and buildings use to produce goods and services

The additional benefit of a specific course of action. This includes both monetary and non-monetary benefits

The most desirable alternative given up when you make a choice.

The study of small economic units such as individuals, firms, and markets.

As you consume more of anything, the additional satisfaction that you receive will eventually start to decrease.

Any natural resource used to produce goods and services.

A decision-making process involving looking at additional benefits and additional costs