Economics review 1

2. study of the choices that individuals and societies make in the production, distribution, and consumption of goods
5. compared to those it purchases from other countries
9. desire, a longing, an appetite for something
10. of the Austrian School of Economists also found the Diamond-Water Paradox
14. Smith was a professor of___________ _______
15. value of all the thing people own
16. asks why rare items command high prices while necessities usually command low
17. the human activity that results in the creation of goods and services
18. habit of spending more than one can afford
19. the wealth of nations (father of economics)
20. in a free market resources are allocated with the greatest________
21. that seeks to help those making decisions to make wise choices

1. difference in value of the goods that a country sells
2. any system for the production, distribution and consumption of goods
3. establishment of colonies and extensive territories created to benefit their mother countries
4. used in the production and distribution of goods and services
6. of goods, or performance of tasks, based upon comparative advantage
7. worth that consumers attach to it
8. on imported goods
11. system for the production,distribution and consumption of goods and services
12. source of wealth
13. French term meaning "let alone"