econ byv 1

labor

human effort that is applied to natural resources to produce goods and services.

normative statement

An expression of a value judgement

positive statement

An expression of fact

scarcity

The central problem in economics is ___.

production

The creation of goods and services

economics

the study of the production, distribution and consumption of goods and services.

services

Intangible things that satisfy human wants and needs

factors of production

The resources necessary for production are classified as the four ___

capital

The tools that are used by labor in making products

opportunity cost

The value of your second choice that you give up when you take your first choice is ___.

trade off

When you give up one thing for another, you are making a

entrepreneurship

A factor that initiates and supervises production, while taking on the majority of risk

production possibilities frontier

A graph showing the combinations of two products that could be made from a fixed set of resources is called a ___.

model

A theory of reality used to make predictions

natural resources

Raw materials that have not been processed

goods

Tangible things that satisfy human wants and needs

resources

all the things necessary to produce goods and services.

rational choice

means making decisions such that the benefits to society are greater than the costs.