Unit 1: Fundamentals Vocabulary

Unlimited wants and limited resources is known as: 

• Scarcity
• Shortage
• Externality
• Services

Land, Labor, Capital, and Entrepreneurship is known as the what?

• Scarcity
• Efficiency
• Factors of Production
• Allocation of Resources

The effort that people devote to a task for which they are paid

• Land
• Labor
• Efficiency
• Entrepreneurship

The skills and knowledge a human possesses to contribute economically to the economy

• Physical Capital
• Human Capital
• Labor
• Entrepreneurship

All human-made goods that are used to produce other goods and services; tools and buildings

• Labor
• Entrepreneurship
• Physical Capital 
• Human Capital

Ambitious leader who combines land, labor, and capital to create and market new goods and services

• Land

• Labor

• Capital

• Entrepreneurship

All alternatives that we sacrifice when we make a decision

• Trade-off

• Scarcity

• Shortage

• Opportunity Cost

The best alternative given up as the result of a decision (second best choice)

• Scarcity

• Opportunity Cost

• Efficiency

• Trade-offs

Using resource in such a way as to maximize the production of goods and services (not wasting products)

• Efficiency
• Scarcity
• Allocation
• Distribution

What a consumer and producer willingly exchange goods and services

• Efficiency
• Cost
• Price
• Voluntary Exchange