Unit 1 Study Guide

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Across
  1. 2. ___ cost; value of best alternative passed up for chosen activity
  2. 4. physical objects that someone produces
  3. 7. Adam Smith says people respond to these, which makes free markets work
  4. 8. ___ resources; man-made objects used to produce goods
  5. 10. condition facing all societies because there are not enough resources
  6. 11. ____ cost; already incurred and cannot be recovered
  7. 13. guns or ___; describes the common spending choices facing governments
  8. 15. "___ hand"; Adam Smith's theory
  9. 18. place where buyers and sellers carry out exchange
Down
  1. 1. ____ resources; all of the inputs used to make goods
  2. 3. production ___ frontier shows combinations of an economy's output operating efficiently
  3. 5. ____ resources; physical and mental efforts used to produce goods
  4. 6. concentration of efforts on a limited number of activities
  5. 9. ___ self-interest; a key part of Adam Smith's free market theory
  6. 10. work that is done for someone else
  7. 12. unexpected cost incurred by a third party
  8. 14. the type of ownership in a market economy
  9. 16. type of economy where public ownership is a key feature
  10. 17. ___ cost; incremental cost change