Economics Unit 1 Vocabulary

Social science concerned with the way society chooses to employ its limited resources, which have alternative uses, to produce goods and services for present and future consumption

• specialization

• factor of production

• monetary policy

• economics

Branch of economic theory that deals with behavior and decision making by small units such as firms and individuals

• mega-economics

• microeconomics

• fiscal policy

• macroeconomics

Branch of economic theory dealing with the economy as a whole and decision making by large units such as governments

• macroeconomics

• mega-economics

• open market operations

• microeconomics

Basic economic problem that results from a combination of limited resources and limited wants

• opportunity cost

• scarcity

• shortage

• marginal utility

Variety of resources needed or used to produce goods and services

• commodities

• externalities

• opportunity cost

• factors of production

Previously manufactured goods used to make other goods and services

• aggregates

• capital

• technology

• complementary goods

When individuals take risks to develop new products and start new businesses in order to make profits

• sole proprietorship

• monopolistic competition

• entrepreneurship

• innovative development

Choose the correct option that ranks Maslow's Hierarchy of Needs in order, beginning with the most basic level

• security, physiological, esteem, social, self actualization

• physiological, security, social, esteem, self actualization

• social, physiological, security, self actualization, esteem

• physiological, self actualization, social, security, esteem

Sacrificing one good or service to purchase or produce another

• opportunity cost

• production possibilities curve

• selective consumerism

• trade-off

An opportunity cost is...

• the value of the next best alternative that is given up for the action or product chosen

• the amount of output that results from a given level of inputs

• human effort directed toward producing goods and services