Intro to Econ Vocab

Definition: something that people desire but that is not necessary for survival

• good

• want

• need

Definition: the principle that limited amounts of goods and services are available to meet unlimited wants

• scarcity

• services

• entrepreneur

Which of the following is NOT part of the factors of production?

• land

• labor

• capital

• stock

Economics is...

• the study of how people seek to satisfy their needs and wants by making choices

• the study of how people spend their money

• the study of how people use resources to make money and jobs

Definition: the most desirable alternative given up as the result of a decision

• factors of production

• production possibilities

• opportunity cost

Definition: the use of fewer resources than an economy is capable of using

• opportunity costs

• underutilization

• efficiency

This curve represents...

• supply and demand

• factors of production

• production possibilities

What does Point X represent?

• underutilization field

• scarcity field

• efficiency field

What does Point A represent?

• underutilization field

• scarcity field

• efficiency field

What type of economy is based solely on the forces of supply and demand?

• Command Economy

• Mixed Economy

• Free Market Economy