Economics: Chapter 1 Key Terms

The study of how society chooses to use scarce resources to satisfy its unlimited wants and needs.

• Economics

• Microeconomics

• Macroeconomics

• Capital Resource

The study of a single factor of an economy - such as individuals, households, businesses, and industries - rather than an economy as a whole.

• Microeconomics

• Macroeconomics

• Productivity

• Opportunity Cost

The study of an entire economy or one of its principal sectors.

• Macroeconomics

• Microeconomics

• Scarcity

• Factors of Production

A resource used to produce goods and services.

• Factors of Production

• Capital Resource

• Capital Good

• Production Possibilities Curve

An item that is used in the production of other goods and services.

• Capital Resource

• Capital Good

• Opportunity Cost

• Economics

A building, structure, machine or tool that is used to produce goods or services.

• Capital Good

• Capital Resource

• Scarcity

• Macroeconomics

The fundamental condition of economics that results from the combination of limited resources and unlimited wants.

• Scarcity

• Productivity

• Microeconomics

• Macroeconomics

The level of output that results from a given level of input.

• Productivity

• Economics

• Opportunity Cost

• Production Possibilities Curve

The value lost by rejecting one use of resources in favor of another.

• Opportunity Cost

• Production Possibilities Curve

• Factors of Production

• Capital Good

A graphic representation showing all of the possible combinations of two goods or services that can be produced in a stated period, assuming that the amount of available resources and technology will not change during the period, and that all of the national, human, and capital resources involved are being used in the most efficient manner possible.

• Production Possibilities Curve

• Opportunity Cost

• Productivity

• Factors of Production