Name: 
 

ECON CH-1 VOCAB



Matching
 
 
a.
production possibilities frontier
m.
human capital
b.
law of increasing costs
n.
capital
c.
economics
o.
underutilization
d.
physical capital
p.
land
e.
cost
q.
guns or butter
f.
scarcity
r.
factors of production
g.
labor
s.
need
h.
efficiency
t.
opportunity cost
i.
goods
u.
shortage
j.
thinking at the margin
v.
production possibilities curve
k.
want
w.
services
l.
entrepreneur
x.
trade-off
 

 1. 

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

 2. 

all human-made goods that are used to produce other goods and services; tools and buildings
 

 3. 

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

 4. 

law that states that as we shift factors of production from making one good or service to another, the cost of producing the second item increases
 

 5. 

a graph that shows alternative ways to use an economy’s resources
 

 6. 

actions or activities that one person performs for another
 

 7. 

limited quantities of resources to meet unlimited wants
 

 8. 

a phrase that refers to the trade-offs that nations face when choosing whether to produce more or less military or consumer goods
 

 9. 

the most desirable alternative given up as the result of a decision
 

 10. 

physical objects such as clothes or shoes
 

 11. 

the skills and knowledge gained by a worker through education and experience
 

 12. 

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

 13. 

a situation in which a good or service is unavailable
 

 14. 

to an economist, the alternative that is given up because of a decision
 

 15. 

any humanmade resource that is used to create other goods and services
 

 16. 

an alternative that we sacrifice when we make a decision
 

 17. 

using fewer resources than an economy is capable of using
 

 18. 

natural resources that are used to make goods and services
 

 19. 

ambitious leader who combines land, labor, and capital to create and market new goods and services
 

 20. 

the study of how people seek to  satisfy their needs and wants by making choices
 

 21. 

the effort that people devote to a task for which they are paid
 

 22. 

land, labor, and capital; the three groups of resources that are used to make all goods and services
 

 23. 

using resources in such a way as to maximize the production of goods and services
 

 24. 

an item that we desire but that is not essential to survival
 



 
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