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| 5794283975 | Absolute Advantage | Can produce more of a good with given resources. Can produce the good with fewer inputs. Is "BEST" | 0 | |
| 5794289790 | Comparative Advantage | The ability to produce a good at a lower opportunity cost than another producer. "Not So Bad At" | 1 | |
| 5794292572 | Opportunity Cost (trade-off) | The value of the next best forgone alternative | 2 | |
| 5794295047 | Resource Specialization | explains increasing opportunity cost. Some resources are better suited to make a specific goods. ( A cow is a useful resource to produce milk but not a car ) | 3 | |
| 5794301397 | Increasing Opportunity Cost | as resources are pushed into the production of a good, an increasing amount of the other good must be given up; occurs because well-suited resources are used up and less adaptable inputs must be used instead to produce the desired good. | 4 | |
| 5794308900 | Scarcity | unlimited wants with limited resources | 5 | |
| 5794315736 | Factors of Production, Inputs, Resources | Land, Labor, Capital, Entrepreneurship | 6 | |
| 5794316807 | Marginal | Additional | 7 | |
| 5796087812 | Three basic economic questions | What to produce; How to produce; For whom to produce | 8 | |
| 5796088272 | Adam Smith | Wealth of Nations. Invisible hand= self interest. Explains how capitalism results in economic growth. | 9 | |
| 5796091860 | Negative Externality (spill-over) | cost to bystander from the production and consumption of a good. Pollution from a coal fire plant/ Cigarette Smoke. Market only: too much of these goods produced and price is too low. Government often regulates or taxes. | 10 | |
| 5796203046 | Positive Externality (spill-over) | benefit to bystander from the production and consumption of a good. Flu shot, schools. Market only: too little of these goods produced and price is too high. Government often provides or subsidizes. | 11 |
