A visual representation of the relationship between two given sets of data.

The system used to manage limited resources for the production, distribution, and consumption of goods and services.

Money that could be invested in stocks, bonds, real estate, or businesses to produce future wealth.

The value of the next best alternative that is given up when making a decision.

The fairness with which an economy distributes its resources and wealth.

Metaphor that Adam Smith used to explain how markets trade.

People choose something when the benefits are greater than the costs.

This is used to determine whether countries are rich or poor.

The knowledge and skill that people gain from education, on-the-job training, and other experiences.

An economic system in which decisions about production and consumption are made by a powerful ruler or government.

This is when economists use objective analysis to find out how the economy actually works.

What you gain by adding one more unit of something.

A measure of the efficiency with which goods and services are produced. This is often stated as quality produced per person per hour.

Ocean waves are considered to be this type of resource when used to create energy.

These governmental payments are not included in the GDP.

The study of how people choose to use their limited resources to satisfy their unlimited wants.

Markets usually do better than anyone or anything else at coordinating exchanges between buyers and sellers.

The satisfaction one gains from consuming a product or service.

Tools, machines, and buildings used to produce goods and services.

These are factor payments made to workers in exchange for their labor.

This is referred to as the "no-free-lunch principle." Every decision has tradeoffs.

Actions of people/governments always have effects that are not expected.

The willingness and ability to take the risks involved in starting and managing a business.

The resources used to produce goods and services. Economics define these resources as land, labor, and capital.

A society's way of coordinating the production and consumption of goods and services.