ISS: Unit 3 Vocabulary Review

Part of economics that studies how individuals and businesses make choices regarding limited resources and the effects of those decisions

• factor market

• free enterprise

• macro-economics

• microeconomics

• product market

Using resources in a way that maximizes the production of goods and services

• efficiency

• incentive

• opportunity cost

• scarcity

• specialization

Ability of a country to produce a good or service for a lower opportunity cost than others

• comparative advantage

• monopolistic competition

• monopoly

• oligopoly

• perfect competition

Additional income from producing one more unit of a good

• marginal benefit

• marginal cost

• trade barrier

• trade deficit

• trade surplus

Place where companies buy inputs to produce their goods and services

• factor market

• free enterprise

• macro-economics

• microeconomics

• product market

Market dominated by one seller

• comparative advantage

• monopolistic competition

• monopoly

• oligopoly

• perfect competition

Limited quantities of resources to meet unlimited wants

• efficiency

• incentives

• opportunity cost

• scarcity

• specialization

Market structure in which many companies sell products that are similar

• comparative advantage

• monopolistic competition

• monopoly

• oligopoly

• perfect competition

Part of economics that studies the economy as a whole and how choices are made on a national, regional, and global basis

• factor market

• free enterprise

• macro-economics

• microeconomics

• product market

Motivating factors that influence choices

• efficiency

• incentives

• opportunity costs

• scarcity

• specialization