1.
What you give up when you choose one thing over another. If you pick one item, you can't have the other.
2.
There isn't enough of something to meet all our desires. It forces us to make choices about what to spend our time and money on.
3.
What you give up when you make a choice. It's the value of the next best thing you didn't choose.
4.
The pleasure or satisfaction you get from using a good or service.
5.
Costs that you've already paid and can’t get back.
6.
A graph that shows the maximum possible output of two products with available resources (Abreviation).
7.
Latin phrase meaning “all other things being equal.”
8.
Factors are variables that cannot be controlled within an economic model.
9.
Statement which describes the world as it is
10.
Statement which describes how the world should be
11.
Factors that are controlled from within the model.
12.
Consumers can only partially adjust behavior.
13.
Consumer have time to adjust to market condition fully.
14.
Goods produced for current consumption
15.
Goods that help produce other valuable goods
16.
Using resources to create or buy new capital
17.
Advantage: When a country has a lower opportunity cost of production.
18.
Adam Smith's concept that individuals' self-interested behavior can lead to positive social outcomes.
19.
Advantage: When a country is more productive compared to another country.
20.
An increase in the amount of goods and services produced
