Economics Unit 1 Vocabulary

The condition that arises from unlimited wants and limited resources

• Production

• Scarcity

• Resources

A conclusion reached after considering alternatives and their results

• Decision
• Choice
• Trade-off

Things that we have that are in limited supply and which may include personal resources (financial, skill, time) or productive resources (capital resources, human resources, natural resources and entrepreneurship). 

• Opportunity Costs
• Benefits
• Resources

The condition of not being able to have all the goods and services one wants.

• Costs
• Scarcity
• Benefits

Desires that can be satisfied by consuming or using a good or service.

• Wants
• Costs
• Trade-offs

The second-best alternative (or the value of that alternative) that must be given up when making a choice.                       

• Trade-off
• Opportunity Cost
• Scarcity

The giving up of one benefit or advantage in order to gain another regarded as more favorable.

• Trade-offs
• Paced decision-making process
• Decision

A decision-making process designed to help people solve problems in a rational, systematic way. It includes the following steps: State the Problem, List Alternatives, Identify Criteria, Evaluate Alternatives, and Make a Decision

• Opportunity costs
• Cost-benefit analysis
• PACED decision-making process

Monetary or non-monetary gain received because of an action taken or a decision made

• Benefits
• Costs
• Choice

What must be given up to obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.

• Benefits
• Costs
• Choice