Econ Unit 1 Review

A measure of the efficiency with which goods and services are produced 

Businesses and Consumers have the most freedom about choices; little gov involvement 

The willingness and ability to take the risks involved in starting and managing business

Alternative Choices

When two corporations that produce the same kind of product merge, it is known as a

The study of how people choose their limited resources to satisfy their unlimited wants

System used to manage limited resources for the production, distribution, and consumption

2 or more owners

Any factor that encourages or motivates a person to do something

Physical articles that have been produced for sale or use: food, clothing, and cars.

The condition that results because people have limited resources but unlimited wants is called

The resources used to produce goods and services. Resources such as land, labor, and capital

Main advantage of corporate form of business

What is the major reason for conglomerate mergers?

A model of an economy that shows all the combinations of two goods that can be produced

corporation with 4 businesses, making unrelated products

The value of the next best alternative that is given up when making a choice. EX: Sleep/Work

What type of economy was characteristic of communist bloc countries of the former Soviet Union?

The tools, machines, and buildings used to produce goods and services are called

A way to compare costs of an action with the benefits of that action

The minimum wage is an example of a federal law that supports

voluntary association of people formed to carry on some economic activity that benefits members

Which of the following is an example of the government playing an indirect role in the economy?

Work done by someone else for which a consumer, business, or government is willing to pay