Economic Concepts Flashcards

Front

A curve that shows the possible combinations of goods that an economy can produce given its resources is the:

Back

Production Possibilities Curve

Front

The tools, equipment, and skills used to produce goods and services are examples of:

Back

Capital

Front

Macroeconomics is the study of the economy as a whole.

Back

Study of the economy as a whole

Front

Risk-takers that combine land, labor, and capital to produce goods are called:

Back

Entrepreneurs

Front

The principle that choices involve costs because resources are limited is best illustrated by:

Back

Trade-offs

Front

The goal of economic models is to:

Back

Represent reality in simplified form

Front

A common problem with economic models that can affect their accuracy is:

Back

Economists’ bias

Front

The factor of production that includes human effort, skills, and abilities is:

Back

Labor

Front

Goods that are essential for survival are referred to as:

Back

Needs