Intro to Economics Vocabulary

The study of scarcity and choice

• Economics

• Wants

• Production Possibilities Frontier

• Psychology

Desires that can be satisfied by consuming a good or service

• wants

• needs

• capital

• scarcity

Basic requirements for human survival

• wants

• needs

• scarcity

• human capital

The limited nature of society's resources

• Factors of production

• wants

• scarcity

• capital

Land, labor, and capital; the three groups of resources that are used to make all goods and services

• production possibilities frontier

• factors of production

• natural resources

• physical capital

Raw materials from nature that are used to produce goods

• capital

• natural resources

• specialization

• input

A persons' skills and abilities

• specialization

• human capital

• natural abilities

• physical capital

The human-made objects used to create other goods and services

• human capital

• financial capital

• productivity

• physical capital

A person who starts up and takes on the risk of a business

• human resources

• entrepreneur

• head honcho

• factors of production

The most desirable alternative given up as the result of a decision

• marginal cost

• specialization

• opportunity cost

• factors of production