Matching Pairs Econ Chapter 1 ReviewOnline version A reivew by Adam Hayes 1 When an economy shows up on the line of a Production Possibilities Curve. 2 The key economic problem; unlimited wants and needs, limited goods and services. 3 All of the possible alternatives to any given choice. 4 The most desirable alternative we give up when making any choice. 5 Items within an economy like tools / buildings. 6 Physical items within an economy (i.e. desk, building, etc.) 7 As we shift from 1 good to another, the cost of the 2nd good increases. 8 Any point inside the line of a possibilities production curve. 9 Actions or activities that one person performs for another. 10 Items that one needs for survival like food and water. 11 An individual who finds a new way to combine the factors of production to make a new good / service. 12 A study of people and the choices they make to satisfy their wants / needs. 13 All of the natural resources provided by Earth. 14 The knowledge and skills possessed by a person through education / experience. 15 The phrase that describes how a nation must choose between military and domestic goods. 16 When you do not make an all or nothing decision, but in increments of just one more (or less). 17 The effort that goes into any good or service. 18 Any item that we desire, but is not necessary for survival. Law of Increasing Costs Trade Offs Thinking at the Margin Efficiency Underutilization Guns or Butter Scarcity Needs Labor Services Physical Capital Economics Goods Human Capital Want Entrepreneur Opportunity cost Land
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