The situation in which some necessities have little value while some non-necessities have a much higher value
Paradox of value
Manufactured goods needed to produce other goods and services
Capital goods
To arrive at an economic decision, a decision-making grid may be used to evaluate _
Alternative choices of action
Division of labor is a characteristic of
Assembly line production
The study of economics is important because it enables us
To become better decision makers
The dollar value of all final goods, services, and structures produced within a country's borders in a single year is
Gross Domestic Product (GDP)
A popular model used to illustrate the concept of opportunity cost is
The production possibilities fronteir
An economy at its product possibilities fronteir is operating at
At full potential
Entrepreneurs are considered the driving force in an economy because
They start new business
Actions in one part of the country or world that have economic impact on what happens elsewhere are examples of
Economic independence
Worth that can be expressed in dollars and cents.
Value
Study of how people try to satisfy their needs through the careful use of scarce resources
Economic
Tools, equipment, machinery, and factories used in the production of goods
Capital
Condition of not having not enough resources to produce all the things people want
Scarcity
Cost of the next-best alternative use of money, time, or resources when one choice is made rather than another
Opportunity cost
Sum of those economic products that are tangible, scarce, useful, and transferable.
Wealth
People with all their efforts, abilities, and skills.
Labor
Alternative choices made by consumers in the marketplace.
Trade-offs
Quality of life based on the ownership of the necessities and luxuries that make life easier
Standard of living
Tangible item that is economically useful or that satisfies an economic want.
Good
Manufactured good that is used to produce other goos and services
Capital good
Process of using up goods and services to satisfy wants and needs
Consumption
Basic requirement for survival
Need
Something we would like to have, but is not necessary for survival
Want
Work that is performed for someone
Service
Diagram representing various combinations of goods and/or services that an economy can produce when all productive resources are fully employed
Production possibilities fronteir
A measure of the amount of goods and services produced with a given amount of resources in a specific period of time
Productivity
Where factors of production are bought and sold
Factor market
Any good that lasts three years or more when used regularly
Durable good
Economy in which consumers and privately owned businesses make the majority of the WHAT, HOW, and FOR WHOM decisions
Free enterprise economy