final review

The ability of a nation to produce more total units of a good or service

• Absolute Advantage

• Comparative Advantage

• Entrepreneurship

• Opportunity Cost

Economic system where the 3 economic questions are answered by the government

• Command Economy

• Market Economy

• Traditional Economy

• Market Failure

The ability of a nation to produce a good or service at a lower opportunity cost

• Absolute Advantage

• Comparative Advantage

• Market Economy

• Productivity

Guide the decision making process of the manufacturer/producer/provider of goods & services:

• Economic Questions: What, How, For Whom

• Economic Questions: Why, How, What

• Economic Questions: What, For Whom, Why

• Economic Questions: For Whom, What, When

The resources required to create a good or service.

• Factors of Production: Land, Labor, Capital, Entrepreneurship

• Factors of Production: Natural, Human Resources, Labor, Capital

• Productive Resources: Land, Capital, Entrepreneurship, Money

• Productive Resources: Tools, Factories, Natural Resources, Human Resources

Knowledge or skills of how to do something obtained through life experience, training, education, and/or other methods of learning

• Physical Capital

• Human Capital

• Human Resources

• Productive Resources

Economic system in which the 3 economic questions are answered by consumers and producers

• Market Economy

• Command Economy

• Traditional Economy

• Socialist Economy

Unlimited wants intersecting with limited resources

• Scarcity

• Efficiency

• Opportunity Costs

• Shortages

The fact that there are limited amounts of goods and services to meet unlimited wants is called:

• Scarcity

• Shortage

• Surplus

• Economics

An opportunity cost is

• usually absent in a command economy.
• when goods are recycled into other goods.
• the next-best alternative you give up in order to do something else.
• is only an issue when there is not a scarcity of goods and resources.