Economics

Unit 1 Reading Assignment


Ch. 1 Terms

1) Economics – the study of human efforts to satisfy needs and wants using scarce resources.

2) Capital – tools and machines used to produce a good or service for sale.

3) Production – process of creating goods and services with the combined use of land, capital, labor, and entrepreneurship.

4) Service – work or labor performed for someone.

5) Trade-offs – alternatives that must be given up when one is chosen rather than another.

6) Production Possibilities Frontier – diagram representing maximum combination of goods and or services an economy can produce when all productive resources are fully employed.

7) Want – way of expressing or communicating a need; a broader classification than needs.

8) Financial Capital – money used to buy the tools and equipment to be used in production.

9) Good – tangible economic product that is useful, relatively scare, transferable to others, used to satisfy wants and...