Unit 1 Fundamentals

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

The principle that limited amounts of goods and services are available to meet unlimited wants.

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

All options given up when a choice is made.

Factors of Production

A person who decides to combine productive resources to create a good or service

The process of distributing resources, goods, and services.

A graph that shows alternative ways to use a country's productive resources.

An economic principle which states that as production shifts from making one good or service to another, more resources are needed to increase production of the second good or service.

A situation in which consumers want more of a good or service than producers are willing to make available at a particular price.