the most desirable alternative given up as the result of a decision
A situation in which unlimited wants exceed the limited resources available to fulfill those wants
factors of production
Land, labor, and capital; the three groups of resources that are used to make all goods and services
all natural resources used to produce goods and services
Human effort directed toward producing goods and services
the human-made objects used to create other goods and services
the skills and knowledge gained by a worker through education and experience
Accepting the risk of starting and running a business.
the struggle between organisms to survive in a habitat with limited resources
Economic decisions are made by individuals or the open market.
An economic system in which the government controls a country's economy.
3 questions of an economic system
1. what and how much should be produced?2. how goods and services should be produced?3. who gets the goods and services produced?
a shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers
government programs that protect people experiencing unfavorable economic conditions
the cost of producing one more unit of a good
the additional benefit to a consumer from consuming one more unit of a good or service
a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and in which the sum of consumer surplus and producer surplus is at a maximum
the ability to produce a good using fewer inputs than another producer
the ability to produce a good at a lower opportunity cost than another producer