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

Physical objects such as clothes or shoes.

Natural resources that are used to make goods and services.

The most desirable opportunity given up as the result of a decision.

In terms of the factors of production, factories and factory equipment.

An item that we desire but is not essential for survival.

Something like air, food, or shelter that is necessary for survival.

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

The trade-off that nations face when choosing whether to produce more or less military or consumer goods.

In economics, ‘butter’ refers to this.

Actions or activities one person performs for another.

An alternative we sacrifice when we make a decision.

Any human-made resource that is used to create other goods or services.

Deciding whether to use one additional unit of some resource.

PPC & PPF - what do they stand for?

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

Ambitious leader who combines land, labor, and capital to create and market new goods or services.

The skills and knowledge gained by a worker through education and experience.

As we shift factors of production from making one good or service to another, the cost of producing the second item increases.

The current drought in California is an example of these two economic principles.

Limited quantities of resources to meet unlimited wants.

Using fewer resources than an economy is capable of using.

All tools and buildings.

Instead of producing 50 butter and 350 guns, the U.S. government chooses to produce 250 butter and 250 guns. What is the opportunity cost of producing 250 butter?

The self-regulating force of the market, according to Adam Smith.