Economics M1L1 Vocabulary

4. Something used to make something else.
7. Studying the economic decisions made by individuals and businesses.
8. Fixed costs plus variable costs equal total costs.
9. The study of how we make decisions in a world of limited resources.
10. Previously manufactured goods used to make new goods and services.
11. Services are work performed by a person for someone else.
14. The cost of the next best alternative use of time or money when choosing to do one thing instead of another.
17. The cost of producing one more of an item.
18. A comparison of the cost of production versus the benefit of production.
19. Expenses that change when the number of items produced changes.

1. Studying the economy as a whole and decisions made by larger units such as the government or entire industries.
2. An economic system in which people do things the way they have always been done which emphasizes the trading and bartering of products and services.
3. The human effort used to produce goods or services.
5. Products that we use to satisfy our wants and needs.
6. Things we find in nature used to make goods or services.
12. People who start a business or invent a new product.
13. Type of command economy in which a government owns the factors of production and states to seek a more fair distribution of property and labor. There is limited private ownership and limited social class distinctions. The production of goods is to provide for societal needs.
15. Resources needed to produce goods and services.
16. The alternative you face if you decide to do one thing rather than another.