Across
- 1. Production levels outside the PPC that cannot be reached under current conditions. Future technologies or an increase in resources could cause the PPC to move outward.
- 2. An economic model that shows all the possible combinations of two goods that could be made using all available resources
- 3. The value of the next-best alternative when a choice is made
- 4. One who recognizes a profit motive and takes on risk to organize the resources needed to start a business
- 7. All of the human inputs in the production of goods and services
- 9. The level of wealth, comfort, material goods and necessities available to a group or nation.
- 10. System in which the government controls the factors of production and decides what to produce. Communism is an example.
- 11. Private Individuals and businesses control the factors of production and the free market determines prices. The government takes a hands-off approach to the economy. Also called capitalism.
- 12. The land, labor, and capital that goes into the production of goods and services (not money)
- 13. A voluntary exchange that is mutually beneficial
- 17. Individual workers focus on single tasks, enabling each worker to be more efficient and productive
- 19. The condition of having unlimited wants and limited resources
- 21. The combination of free markets and government regulation that exists in virtually every modern economy, although each country may have more of one or the other.
- 23. The ability of an individual or group to produce something more efficiently than another.
Down
- 1. When an incentive is designed to encourage a particular behavior but backfires, causing effects that were not planned by those who designed the incentive.
- 5. Goods that, once produced, are available to all, such as military defense and roads.
- 6. Economic system in which production and trade are controlled by private owners who are motivated by profit
- 7. All natural resources used in production of goods and services
- 8. Free-market economist who supported trade and authored The Wealth of Nations.
- 10. The ability of an individual or group to produce something at a lower opportunity cost than another.
- 14. All of the machinery, equipment, and man-made goods that are used in the production of goods and services
- 15. External motivators that explain people’s choices
- 16. Households sell resources (especially labor) to businesses for money in the resource market and use that money to buy goods and services from businesses in the product market.
- 18. Wasted resources cause production to fall below the PPC, such as unemployed workers or unused factories
- 20. A choice that has both costs and benefits
- 22. The study of an entire economy, including its output, unemployment government spending, and growth