Economics - Unit 1 Vocab

Condition that results from society not having enough resources to produce all the things people would like to have

• scarcity

• need

• land

• entrepreneurship

• capital

A basic requirement for survival

• scarcity

• need

• land

• entrepreneur

• capital

Factor of production that includes natural resources not created by humans

• need

• scarcity

• land

• entrepreneur

• capital

Factor of production that involves risk takers in search of profits

• scarcity

• entrepreneur

• need

• land

• capital

Factor of production that includes tools, equipment, machinery, and factories used in the production of goods and services

• entrepreneur

• land

• scarcity

• need

• capital

Alternative choices

• trade-offs

• free enterprise economy

• standard of living

• opportunity cost

• production possibilities frontier

Where consumers and privately owned businesses answer the three basic economic questions

• trade-offs

• free enterprise economy

• standard of living

• opportunity cost

• production possibilities frontier

The quality of life based on the possession of the necessities and luxuries that make life easier

• trade-offs

• free enterprise economy

• standard of living

• opportunity cost

• production possibilities frontier

The cost of the next best alternative when a choice is made

• trade-offs

• free enterprise economy

• standard of living

• opportunity cost

• production possibilities frontier

Diagram representing various combinations of goods and services an economy can produce when all resources are fully employed

• trade-offs

• free enterprise economy

• standard of living

• opportunity cost

• production possibilities frontier