All of the alternatives that we give up whenever we choose one course of action over another is a?
The most desirable alternative given up as a result of a decision is called the?
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?
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
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:
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
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:
What factor of production does a person's education contribute?
The study of how people make decisions to satisfy their needs and wants is called
A situation that occurs when a producer can not offer a good or service a the current price is a(n)
An item that we desire, but do not need to survive is known as a