ECO: Lesson 4 Vocabulary

Behavior and decision making by small units such as individuals and firms

Behavior and decision making by large units such as governments; the economy as a whole

The option you gave up

The value of the option you gave up

When a resource is near extinction

When a resource is temporarily unavailable

The factors of production are controlled by the government and production decisions are made by the government

The factors of production are owned by indivduals and production decisions are determined by the laws of supply and demand

The economy relies on customs, history, and time-honored beliefs.

It protects private property, follows the laws of supply and demand, and allows government intervention for consumer protection

Little private property, almost all factors of production are owned and controlled by the state; redistribution of wealth

The central government owns and controls all resources and means of production and makes all economic decisions

There is no such thing as a free lunch because someone pays for it at some point

It is the ability to produce goods more efficiently than anyone else

It is the ability to produce goods at a lower cost than anyone else

When an economy focuses on the goods/services which it is most suited to produce