Unit 1 Review

Scarcity of resources in relation to unlimited wants and needs.

Abundance of resources and limited human desires.

Unlimited resources and infinite human labor.

Equal distribution of resources and limited human needs.

the value of the next best alternative that is forgone when a decision is made.

the total amount of money spent on a particular choice.

the potential benefits that are lost when one option is chosen over another.

the financial expense incurred when making a decision.

Retail stores

Natural resources

Labor

Capital equipment

A

B

C

D

E

Cleaning

Oil Rig

IT Support

Plumbing

Fitness Training

Toaster

Legal Consultation

Event Planning

Inefficient use of resources.

An increase in productivity.

An unattainable use of resources.

A maximally efficient use of resources.

Government control of all industries.

Private ownership of property and businesses.

Central planning of the economy.

Absence of market competition.

private ownership of major industries.

centralized economic planning.

government regulation of the economy.

public ownership of resources.

Individuals pursuing their own self-interest can lead to positive economic outcomes for society.

Government intervention is necessary to ensure economic stability.

Monopolies are beneficial for economic growth.

State-owned enterprises are more efficient than private businesses.