Economics Chapter 3

Not enough resources to produce or purchase all of the goods and services people want

• specialization

• scarcity

• trade

• voluntary exchange

goods used to produce other goods Ex: machines, buildings, factories, tools

• entrepreneurship

• human resources

• natural resources

• capital goods

These four types of resources are used to make goods and services

• social security

• opportunity cost

• productive resources

• trade

In order to make a good economic decision it is required that you consider these two things

• cost and benefit

• productivity and performance

• scarcity and resources

• trade and exchange

what you give up as a result of a decision you make

• benefit

• cost

• interdependent

• income

what you gain as a result of a decision you made

• cost

• benefit

• productivity

• specialization

the option or opportunity that you give when you choose something else - - the next best choice

• benefit

• specialization

• voluntary exchange

• opportunity cost

measures how many quality goods and services can be provided with a set of resources

• productivity

• standard of living

• specialization

• interdependent

Increased productivity ___________ the cost of goods and services.

• increases

• reduces

• eliminates

• triples

When both sides willingly trade because they both get something they want

• productivity

• variety

• voluntary exchange

• refund