Unit 1 Review

Front

The study of how people allocate scarce resources for production, distribution, and consumption, both individually and collectively.

Back

economics

Front

The gap between the world's limited resources and our limitless wants is called

Back

scarcity

Front

Due to scarcity, people

Back

need to make decisions about how to efficiently use their resources

Front

The value of the next best alternative that a person must give up when making a choice is

Back

opportunity cost

Front

How are trade-offs and opportunity costs different?

Back

Every time a trade-off is made, an opportunity cost is incurred.

Front

Collectively, the four categories of resources that are used in production of goods and services in the economy.

Back

Factors of Production

Front

Capital refers to...

Back

the tools, equipment, and factories used in production of goods and services

Front

Labor refers to...

Back

people with all their efforts and abilities

Front

Entrepreneurs are...

Back

individuals who start a new business or bring a product to market.

Front

Land includes...

Back

Any natural resource not created by human effort.