Vocab. #1 Review

Front

Motivates a behavior

Back

Incentive

Front

Not enough resources to meet all needs and wants

Back

Scarcity

Front

Purchasing goods today for future profit

Back

Investment

Front

Graph of goods combinations an economy can produce with its resources and technology

Back

Production Possibilities Frontier

Front

Value of the choice you give up; the next best alternative

Back

Opportunity Cost

Front

Discourages a behavior

Back

Disincentive

Front

Land, Labor, Capital, Entrepreneurial Ability

Back

Factors of Production

Front

Divide a large job into smaller parts

Back

Division of Labor

Front

What to produce? How to produce it? For whom?

Back

Basic Economics Questions

Front

Distribute or designate according to a plan

Back

Allocate