Economics Unit 1 Fundamentals vocab

human-made resources used to make products or deliver services; can be physical or human

graph that shows amounts of two products that can me made with given amount of resources

using profits to buy new machines and equipment, research new technologies, and educate workers

another name for the market economy

legal agreement

interacting forces that determine the prices of goods and services in a market economy

resources used in production

products

market structure in which one company has control over production and prices

additional cost

economy in which the government makes all economic decisions

Which of the following is NOT one of the three basic economic questions?

the skills and knowledge of a company's workers.

process of weighing costs and benefits in order to make a rational decision

type of specialization in which different workers do different parts of the same job

choice in which you weigh the cost and benefits of each option

economy based on private ownership and the determination of prices by supply and demand

a choice in which you gain something, but must also give up something

land and all the natural resources on the land, as well as any improvements people have made

all the tools, machines, and other equipment a business needs

using laws to control what businesses can do

thing you give up by making a choice; value of the next best alternative you could have chosen

all the things people can use to make goods

people who buy things

additional benefit gained by an additional unit of cost

process of making things; mental and physical efforts of human workers.

goods paid for and consumed by one individual or household

process that occurs when people specialize producing 1 good or service & then trade for others

situation in which government decides to stop regulating a particular industry

producing maximum output with minimum input, or cost

limited

products

work at just one particular kind of job or produce one particular kind of thing

economic system that has privately owned businesses & government owned (or regulated) business

situation where a business benefits from production for which others end up paying some costs

a group of companies that combine their resources in order to control production and prices

goods for which the costs and benefits are shared by everyone in a society

laws that prevent the formation of monopolies

money payments made by governments for which no services are required in return

person who starts and manages a business

efficient use of resources; output per unit of input