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18 Cards in this Set
- Front
- Back
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Need
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Something that is necessary for survival
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Want
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An item that we desire but is not essential to survival
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Economics
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The study of how people seek to satisfy their needs and wants by making choices
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Goods
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Physical objects
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Services
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Actions or activities that one person performs for another
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Scarcity
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Implies limited quantities of resources to meet unlimited wants
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Shortage
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Occurs when producers will not or cannot offer goods or services at the current prices
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Factors of Production
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Land,labor,capital; the three groups of resources that are used to make all goods and services
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Land
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Natural resources that are used to make goods and services
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Labor
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The effort that people devote to a task for which they are paid
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Capital
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Any human-made resource that is used to create other goods and services
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Physical capital
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All human-made goods that are used to produce other goods and services
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Human capital
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The skills and knowledge gained by a worker through education and experience
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Entrepreneur
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Ambitious leader who combines land,labor,and capital to create and market new goods and services
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Trade-off
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An alternative that we sacrifice when we make a decision
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Guns and Butter
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A phrase that refers to the trade-offs that nations face when choosing whether to produce more or less military or consumer goods
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Opportunity cost
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The most desirable alternative given up as the result of a decision
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Thinking at the margin
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Deciding whether to do or use one additional unit of some resources
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