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