Unit 1 - Introduction to Economics

an item that we desire but that is not essential to survival

• Want

• Need

• Goods

• Scarcity

Sacrificing one good or service to purchase or produce another

• Trade Off

• Revenue

• Trade offs

• Durable Good

a physical item that is produced and can be weighed or measured

• Good

• Values

• Need

• Service

Definition: work that is performed for someone

• Durable Good

• Good

• Service

• Labor

Definition: Basic requirement for survival

• Goods

• Service

• Good

• Need

Definition: the most desirable alternative given up as the result of a decision

• Opportunity Cost

• Scarcity

• Capital

• Economics

Definition: item that wears out, is used up, or lasts for fewer than three years when used regularly

• Capital Good

• Service

• Consumer Good

• Non-Durable Good

Definition: Production possibilities example involving choices between military defense and civilian good

• Guns versus butter

• Capital as a factor

• Production possibilities curve

• Trade-off

Definition: long-lasting good like a car or a refrigerator

• Service

• Consumer Good

• Capital Good

• Durable Good

All economic choices include

• Trade offs

• Labor

• Opportunity cost

• Scarcity