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Definition
| The study of how individuals, families, businesses, and socities use limited resources to fulfill their inlimited wants. |
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| Deals with behvavior and decision making by small units such as individuals and firms. |
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| Deals with the economy as a whole and decision making by large units such as governments. |
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| When people do not and cannot have enough income ($) and time to satisfy their every want. |
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| Resources needed to produce goods and services. |
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| Refers to natural resources that exist without human intervention. Includes: actual surface land and water, as well as, fish, animals, trees, mineral deposits, and other gifts of nature. |
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| Human effort directed toward producing goods and services. |
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| Manufactured goods used to make other goods and produce other services. |
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| The amount of output (goods and services) that results from a given level of inputs (land, labor, capital, and entrepreneurship). |
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| When individuals take risks to develop new products and start new businesses in order to make profits. |
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| Sacrificing one good or service to purchase or produce another. |
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| The value of the next best alternative given up for the alternative that was chosen. |
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| Production Possibilities Curve |
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Definition
| A graph showing the maximum combinations of goods and services that can be produced from a fixed amount of resources in a given period of time. |
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| The production and distribution of goods and services in a society. |
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| A theory or simplified representation that helps explain and predict economic behavior in the real world. |
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Definition
| An assumption involving two or more variables that must be tested for validity. |
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