UNIT 1 ECONOMICS VOCAB

4. Raw materials from nature that are used to produce goods.
5. Land, labor, and capital; the three groups of resources that are used to make all goods and services
9. The human-made objects used to create other goods and services
11. The cost added by producing one additional unit of a product or service.
15. The methods societies use to produce and distribute resources
16. An economic system in which the government controls a country's economy.
17. Market based economic system with limited government involvement
20. The most desirable alternative given up as the result of a decision
21. Phrase coined by Adam Smith to refer to the self regulating nature of a free marketplace
22. The products and/or services that an organization produces
23. The additional benefit associated with an action.
24. The specific economic resources used in producing goods and services
25. The value of a particular product compared to the amount of labor needed to make it.

1. The line on a production possibilities graph that shows the maximum possible output
2. A penalty that discourages a behavior
3. A person who starts up and takes on the risk of a business
6. The limited nature of society's resources
7. A reward or other enticement that encourages a behavior
8. The development of skills in a specific kind of work; division of labor
10. Basic requirements for human survival
12. An economic system in which resources are primarily owned and controlled by the private sector
13. People who work to produce goods and services
14. The study of scarcity and choice
18. Desires that can be satisfied by consuming a good or service
19. The principle that people may decide what, when, and how they want to buy and sell