What is scarcity

Economize

"Make decisions according to what you believe is the best combination of cost and benefits"

Production posibilities curve (PPC)

A graph used to illustrate the impact of scarcity on an economy by showing the maximum number of goods or services that can be produced

Consumer

A person who buys goods or services for personal useb

Producer

A person who makes goods and provides services

Wants

Are DESIRE that can be satisfied by consuming a good or service.

Needs

Are THINGS, such as FOOD, CLOTHING, and SHELTER, that are NECESSARY for survival.

Services

Are WORK that one person performs for another for payment.

Goods

Are physical OBJECTS that can be purchased

Land

Includes all natural resources found on or under the ground

Labor

Is all the human time, effort, and talent

Capital

Is all the resources made and used by people to produce and distribute goods and services

Enterpreneurship

Is the combination of vision, skill, ingenuity and willingness to take risk that is needed to create and run new business

Marginal cost

Is the cost is using one more unit of a good or service

Cost-benefit analysis

Most useful tools for individuals, business, and governments when they need to evaluate the relative worth of economic choices

Oppurtunity cost

Of a DECISION is the value of the next-best alternative or what you give up by choosing

Incentives

Or BENEFITS offered to encourage people to act in certain ways

Utility

Or the benefits or satisfaction gained from the use of a good or service

Factors of production

Or the economic resources needed to produce goods and services

Marginal benefit

Refers to the benefit or satisfaction received from using one more unit of good or service

Economic Models

Simplified representation of complex economic activities, system or problems to clarify trade offs.

Scarcity

The SITUATION, that exist when there are not enough resources to meet human WANTS.

Economics

The STUDY, of how people CHOOSE to use scarce resources to satisfy their wants.

Trade-off

The alternative that you give up when you make an economic choice