Economics

All of the alternatives that we give up whenever we choose one course of action over another is a?

trade-off

The most desirable alternative given up as a result of a decision is called the?

opportunity cost

To simplify the trade-offs that individuals, households, and firms face, economists use which example?

guns and butter

The economic concept of guns or butters means that?

governments must decide whether to produce more or less military or consumer goods

If a person who wants to buy a CD has just enough money to buy one, and chooses CD A instead of CD B, then CD B is the?

opportunity cost

A decision-making grid is a visual way of?

making marginal decisions

When you decide how much more or less to do (act) you are?

thinking at the margin

Making a decision at the margin is possible only in situations where?

available alternatives can be divided into increments

All of the following are trade-offs for a student who spends a semester abroad except?

eating all of their favorite foods

A decision is made at the margin when each alternative considers?

cost and benefit are ranked

The productions possibilities curve shows the relationship between the production of

any two categories of goods

Any point inside the line of the productions possibilities frontier is

underutilization

The line on the production possibilities curve showing the relative amounts of two types of goods produced using all resources is called the

production possibilities frontier

Using resources in such a way as to maximize the production of goods and services is called:

efficiency

Increasing the number of laborers in an economy generally causes a

increase in the production possibilities curve

The law of increasing costs means that production shifts from one item to another, then:

more and more resources are needed to increase production of a second item

An economy that is not using all of its resources to gain the maximum possible production is considered

underutilized

The curve usually seen in a production possibilities frontier can be explained by:

the law of increasing costs

An economy that is producing the maximum amount of goods and services is considered:

efficient

What factor of production does a person's education contribute?

Human Capital

The study of how people make decisions to satisfy their needs and wants is called

economics

A situation that occurs when a producer can not offer a good or service a the current price is a(n)

shortage

An item that we desire, but do not need to survive is known as a

want