Economics Chapter 1

1. market economy in which privately owned businesses have the freedom to operate for a profit with limited government intervention.
3. the skills and knowledge gained by a worker through education and experience.
6. the development of skills in a specific kind of work.
8. a study that compares the costs and benefits to society of providing a public good.
11. A person who organizes, manages, and takes on the risks of a business.
12. a measure of the amount of output produced by a given amount of inputs in a specific period of time.
14. market in which firms purchase the factors of production from households.
15. the ability of the economy to increase the production of goods and services.
18. Division of work into a number of separate tasks to be performed by different workers.
19. all natural resources used to produce goods and services.
20. a curve showing the maximum combinations of production of two goods that are possible, given the economy's resources.
21. an alternative that we sacrifice when we make a decision.
22. the tools, equipment, machinery, and factories used in the production of goods and services.

2. a reliance on others, as they rely on you, to provide goods and services to be consumed.
4. a movement advocating greater protection of the interests of consumers.
5. Bring buyers and sellers together to exchange goods and services.
7. a simplified version of reality used to analyze real-world economic situations.
9. the effort that people devote to a task for which they are paid.
10. level of economic prosperity.
13. Land, labor, and capital; the three groups of resources that are used to make all goods and services.
16. cost the most desirable alternative given up as the result of a decision.
17. the market in which households purchase the goods and services that firms produce.