Economics
unlimited wants, limited resources
Scarcity
Limited quantities of resources to meet unlimited wants
production possibilities curve
A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good.
labor
work for money
capital
An economic system based on private ownership of capital
trade off
an alternative that we sacrifice when we make a decision
capital good
tool, equipment, or other manufactured good used to produce other goods and services; a factor of production
opportunity cost
the most desirable alternative given up as the result of a decision
Public Sector
that part of the economy made up of the local, state, and federal governments
Externality
the impact of one person's actions on the well-being of a bystander