Applied Econ.

3. to produce - direct most sources to production for military equipment
5. - a useful, tangible item, such as a book, car or compact disc player that satisfies a want
6. of value - very high value
7. possibilities frontier - a diagram representing various combinations of goods and services an economy can produce when all its resources are in use
12. - people with all their efforts, abilities, and skills
13. - dollar value of all goods
15. - the condition that results from society not having enough resources to produce all things people would like to have.
16. - a risk taker in search of profits who does something new with existing resources
17. - refers to the gift of nature, or natural resources not created by people
18. - work that is performed for someone
19. durable good - an item that lasts for fewer than three years
21. smith - defined the wealth of how a nation as the sum of the goods produced by its people
22. - something we would like to have but not necessary for survival
24. - resources are limited and everything we do has a cost
25. - a basic requirement for survival

1. to produce - lower cost to make manufactured items
2. growth - output of goods and services that increase over one year
4. capital - the sum of people's skills, abilities, knowledge, and motivation
8. good - any good that lasts three years or more when used on a regular basis
9. cost - the cost of the next best alternative
10. off - alternative choices
11. whom to produce - society decides what and how to produce
14. - the capacity to be useful and provide satisfaction
15. - takes place when factors of production perform only tasks they can do better or more efficiently than others
16. - the study of how people try to satisfy themselves seemingly unlimited and competing
20. - another factor of production sometimes called capital goods
23. - a location or other mechanism that allows buyers and sellers to exchange a specific product