Economics Vocabulary

3. the effort people devote to tasks for which they are paid.
5. Refer to all natural resources used to produce goods and services.
9. Possibilities Curve: Is a graph that shows alternative ways to use an economy's productive resources.
10. or butter:To describe one of the common choices facing governments: Choice between spending money on military or domestic needs.
11. Are people who decide how to combine resources to create new goods and services.
12. capital: The knowledge and skills a worker gains through education and experiences
13. divide capital into two types: Physical and Human Capital.
14. Limited amounts of resources to meet unlimited wants. opportunity cost:The most desirable alternative given up as a result of a decision.
15. to any human-made resource that is used to produce other goods and services.
17. Possibilities Frontier: Shows combinations of the production of two things. Such as shoes and watermelons.
18. of Increasing Cost: Production shifts from making one item to another, more and more resources are necessary to increase production of the second item.
19. Things we do not need to survive but make our lives better.

1. Are physical objects that someone produces, such as food, clothing, or video games. services:
2. of production:The resources used to make all goods and services.
4. Occurs when consumers want more of a good or service than producers are willing to make available at a particular price.
6. Things you need to stay alive
7. Any point inside the production possibilities frontier indicating the use of fewer resources than the economy is capable of using.
8. Giving up some or all of one thing to gain another.
14. Actions or activities that one person performs for another. Such as medical care and haircuts.
16. Is the use of resources in such a way as to maximize the output of goods and services