CHAPTER 1 key terms

CHAPTER 1 key terms - CHAPTER 1 Scarcity Fundamental...

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CHAPTER 1 Scarcity Fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like. Choice The act of selecting among alternatives. Resource An input used to produce economic goods. Land, labor, skills, natural resources, and capital are examples. Through- out history, people have struggled to transform available, but limited, resources into things they would like to have - economic goods. Capital Human-made resources (such as tools, equipment, and structures) used to produce other goods and services. They enhance our ability to produce in the future. Objective A fact based on observable phenomena that is not influenced by differences in personal opinion. Subjective An opinion based on personal preferences and value judgments. Rationing Allocating a limited supply of a good or resource among people who would like to have more of it. When price performs the rationing function, the good or resource is allocated
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CHAPTER 1 key terms - CHAPTER 1 Scarcity Fundamental...

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