Unit 1 AP Micro

2. The foregone alternative of the next best choice when a decision is made.
8. Comparing additional costs and additional benefits to make choices.
10. The man-made tools, machinery, and buildings used to produce goods and services.
12. an asset used in the production of goods and services to satisfy human wants and needs, also known as a factor of production.
13. The process of focusing resources on a particular task to improve efficiency.
16. The economic model that shows the movement of goods, services, and money between households and businesses.
17. When a nation produces a good at a lower opportunity cost than another nation.

1. The study of what should be in economics, based on values and opinions
3. A nation’s ability to produce more of a good than another nation using the same resources.
4. The study of what is in economics, based on facts and data.
5. The human skill of organizing resources and taking risks to innovate.
6. A productive input that comes from nature.
7. The legal ownership of goods and services that encourages voluntary exchange.
9. The situation of having unlimited wants but limited resources.
11. Giving up one thing to gain another.
14. The relative prices at which two nations agree to exchange goods.
15. The human effort, both physical and mental, used in production.