Fundamental Economic Concepts Vocabulary Test #1

In economic terms, this refers to goods or services that people desire but do not necessarily require for survival.

• Needs

• Trade Off

• Opportunity Cost

• Wants

This is when resources are limited and the need for a good or service is higher for a society than what is produced.

• Scarcity

• Trade Off

• Wants

• Productivity

The term "___ ___ Frontier" (or Curve) is a diagram showing the maximum amount of goods and/or services an economy can produce.

• Allocation

• Land

• Opportunity Cost

• Production Possibilities

In economic terms, this is something a person MUST have in order to survive, as opposed to something a person might simply desire.

• Trade Off

• Marginal Cost

• Need

• Wants

This is equipment and factories used in the production of goods and services.

• Capital

• Capitalism

• Labor

• Land

This is the change in the total cost of an item that occurs when the quantity produced changes by one unit.

• Productivity

• Opportunity Cost

• Marginal Cost

• Marginal Benefit

These are types of resources that are found on or in the earth and are used in the production of goods and services.

• Wants

• Land

• Natural Resources

• Labor

This is one of factors of production (productive resource), referring to anything that is taken from the earth during the production of a good or service.

• Capital

• Labor

• Land

• Entrepreneurship

This is an additional or extra benefit associated with an action.

• Marginal Cost

• Opportunity Cost

• Labor

• Marginal Benefit

This is the amount of goods or services produced per input used.

• Profit

• Profit Motive

• nonprofit

• Productivity