Final Exam Review (Economics)

Efficiency

• Since resources are scarce, most societies try to maximize what they can get out of them

• Not having a lot of something

Services

• actions or activities you give or receive

• Getting a job

Goods

• Something you need

• physical items

Scarcity

• Having a lot of something

• Limited resources for unlimited wants and needs

Opportunity cost

• Choices

• The cost of something

Trade-off

• all alternatives given up as the result of a decision

• Beneficial things you get as a result of a decision

Factors of production

• money, houses, car

• Land, labor, and capital

Shortage

• limited resources at a given price

• Having a lot of a resource

Underutilization

• Efficient use of a resource

• Inefficient use of a resource

Market

• financing

• Decisions made by individuals; based on exchange and trade