100 100 100 100 100 200 200 200 200 200 300 300 300 300 300 400 400 400 400 400 500 500 500 500 500

What is the desire for things that are not essential to survival called?

want

What are ambitious leaders who combine land, labor, and capital to create and market new goods and services called?

entrepreneurs

What are the three factors of production?

land, labor, and capital

What economic law states that as we shift factors of production from one good to another, the price of producing the second item increases?

law of increasing cost

What is deciding whether to do or use one additional unit of some resource?

thinking at the margin

What is something like air, food, or shelter that is necessary for survival called?

need

What do you call a temporary situation in which a good or service is unavailable?

shortage

What are the skills and knowledge gained by a worker through education and experience called?

human capital

What is the line on a production possibilities graph that shows the maximum possible output?

production possibilities frontier

What do you call all human-made goods that are used to produce other goods and services?

physical capital

What's the phrase that refers to the trade-offs nations face when choosing whether to produce military or consumer goods?

guns or butter

What is a natural resource used to make goods and services called?

land

What is the term for using resources in such a way as to maximize the production of goods and services?

efficiency

What is the term for using fewer resources than an economy is capable of using?

underutilization

What is any human-made resource that is used to create other services and goods?

capital

What are physical objects such as clothes or shoes?

goods

What is the effort that people devote to a task for which they are paid called?

labor

What is the alternative that we give up when we choose one option over the other?

cost

What is the graph that shows alternative ways to use an economy's resources?

production possibilities curve

What is the most desirable alternative given up as the result of a decision?

opportunity cost

What is the study of how people seek to satisfy their needs and wants by making choices called?

economics

What are actions or activities that one person performs for another?

services

What is another word for limited quantities of resources to meet unlimited wants?

scarcity

What are all the alternatives that we give up when we make a choice?

trade-offs

What are resources that are used to make all goods and services called?

factors of production