economics ch1

using a product or service.

the process that combines economic resources so the result is a good or service that is available for sale.

the process of getting a product or service to consumers.

social science that studies how people, acting individually and in groups, decide to use scarce resources to satisfy their wants.

natural resources such as soil, minerals, timber, and fresh water.

human resources used to create goods and services.

buildings, tools, and machines people create and used to produce final goods and services.

land, labor, capital, and entrepreneurship.

the imagination, innovative thinking, and management skills needed to start and operate a business.

an inequality exists between wants and the resources available to satisfy them. =WANTS>AVAILABLERESOURCES

the highest valued alternative given up as a result of making a choice.

gains.

losses.

are possible rewards for making some kind of choice or behaving in a certain way.

a negative or withdrawn reward. ex fines and punishment.

exchanging something for something else.

extra or additional costs or benefits of a decision.

a positive difference between total sales and total costs, meaning total sales must be greater than total costs.

relies on voluntary trade as primary means of organizing and coordinating production.

an arrangement that allows buyers and sellers to make exchanges.

the study of ecomomy as a whole.

the study of individual consumers and business.