Economics Chapter 1

_______ are benefits that encourage people to act in certain ways.

If a line falls outside the PPC, it is considered

__________ is the study of individuals in an economy, such as entrepreneurs, individuals, families, and businesses.

_______ means to make the best decision weighing costs and benefits.

Factors of Production: all the natural resources on or under the ground that can be used to produce goods and services.

Factors of Production: the vision, skill, ingenuity, and willingness to take risks to create and run businesses.

If a line falls on the PPC, it is considered

______________ is the study of how people use limited resources to satisfy their unlimited wants.

_________ are physical objects that can be purchased.

____________ is work that can be performed for payment.

If a line falls inside the PPC, it is considered

Factors of Production: all of the human effort, time, and talent that goes into a product.

Economics used this - numerical data and equations - to make assumptions and decisions

The PPC also takes into account a country’s ________ production.

Factors of Production: all the resources made and used by people to produce goods and services.

What a country produces depends largely on what?

_______ ____ the benefit received using one more unit of a good or service. In the equation, it is what you are gaining.