Unit 1 Econ Vocab

1. work done by someone else for which a consumer is willing to pay
3. a society's way of coordinating the production and consumption of goods and services
5. a way to compare the costs of an action with the benefits of that action
7. the willingness and ability to take the risks involved in starting and managing a business
8. an economic system in which decisions about production and consumption are based on custom and tradition
10. physical articles that have been produced for sale or use.
11. the tools, machines, and buildings used to produce goods and services
12. the value of the next best alternative that is given up when making a choice
15. a measure of efficiency with which goods and services are produced

2. the fairness with which an economy distributes its resources and wealth
4. the exchange of one benefit or advantage for another that is thought to be better
6. the resources used to produce goods and services
9. any factor that encourages or motivates a person to do something
13. the condition that results because people have limited resources but unlimited wants
14. a simple model of an economy that shows all the combinations of two goods that can be produced with the resources and tech currently available