Foundations of Economics

A risk-taker who combines the factors of production to create goods and services.

• Human capital

• Entrepreneur

• Bob the Builder

• Service

The study of how people choose to fulfill their unlimited wants and needs using limited resources.

• Economics

• Psychology

• Sociology

• Criminology

An economic system in which economic decisions are made by the government and individuals.

• Market economy

• Command economy

• Mixed economy

• Traditional economy

The limited nature of society's resources.

• Service

• God's will

• Marginal benefit

• Scarcity

An economic system in which economic decisions are made by individuals and businesses, without government regulations.

• Traditional economy

• Command economy

• Mixed economy

• Market economy

Man-made tools, machines, and resources involved in the production process.

• Physical capital

• Human capital

• Good

• Service

Which options you need to give up every time you make a choice.

• Marginal costs

• Marginal benefit

• Trade-off

• Economics

The value of the most important thing that you give up when you make a decision.

• Trade-off

• Marginal cost

• Opportunity cost

• Human capital

What you loose by adding one unit of something.

• Trade-off

• Opportunity cost

• Marginal cost

• Service

The resources required to produce things we would like to have, which include land, capital, labor, and entrepreneurs.

• Ecomonics

• Factors of production

• Command economy

• Service