Chapter 1 Vocabulary 19-35

Market where individuals go to earn their income

Alternatives that must be given up when one is chosen rather than another

sum of people's health, ability, skills, and motivation

Market economy in which privately owned businesses have the freedom to operate for a profit 

Degree by which productive resources are used effeciently

cost of the next best alternative use of time, money, or resources 

Diagram representing maximum combinations goods/services and economy can produce--full employed

Quality of life based on ownership of necessities and luxuries that make life easier

Sustained period during which a nation's total output of goods and services increases

meeting place allowing buyers and sellers of economic products to come together

Ability for a good or service to be useful to someone or provide satisfaction

economic activities in one part of the country or world affect what happens elsewhere

Way of thinking that compares the cost of an action to its benefit

tangible goods that are scarce, useful, and transferable from one another; not services

Market where goods and services are offered for sale

Division of work into a number of separate tasks to be performed by different workers