Terms : Hide Images
| 4796382543 | Scarcity | A condition that exists when there are insufficient resources to satisfy unlimited wants. | 0 | |
| 4796382544 | Opportunity cost | The true cost of something including what is given up to get it. | 1 | |
| 4796382545 | Factors of production | Land, labor, and capital. | 2 | |
| 4796382546 | land | Naturally occurring resource | 3 | |
| 4796382547 | labor | Human effort in the production process. | 4 | |
| 4796382548 | capital | Value of all assets; including money, equipment, buildings, tools, inventory. Capital can be classified into two categories: financial capital, which includes monies to pay for ventures and physical capital, which includes buildings and equipment. | 5 | |
| 4796382549 | Entrepreneurship | Risk taking by business firms and individuals. defined as the skill and ability to effectively manage all of your resources. | 6 | |
| 4796382550 | Property Rights | A system in which valuable items in the economy have specific owners who can dispose of them as they choose. | 7 | |
| 4796382551 | Role of incentives | The possibility of person gain; what motivates people to be involved in the market system and is a major contributor of efficiency in a market economy. | 8 | |
| 4796382552 | Law of diminishing marginal returns | When increasing amounts of a variable factor of production are employed in production along with a fixed production factor, after some point the amount produced will diminish. | 9 | |
| 4796382553 | Four basic economic questions | What goods will be produced? How will resources be used in the production process? Who will receive the goods? When will production occur? | 10 | |
| 4796382554 | Production possibilities curve (PPC) | The graphical representation of the combinations of two goods and/or services that can be produced by an economy when using resources efficiently. |  | 11 |
| 4796382555 | Production Possibilities frontier (PPF) | The graphical representation of the combination of two goods and/or services that ca be produced by an economy when using resources efficiently. | 12 | |
| 4796382556 | Trade-off | The act of giving up one thing to have more of another thing. | 13 | |
| 4796382557 | Economic Growth | Changes in the total output of a nation over time as a result of increased production. | 14 | |
| 4796382558 | Inefficiency | The waste that stems from the unproductive use of resources. | 15 | |
| 4796382559 | Market Economy | 16 |
