Chapter 1- Section 3 Flashcards Preview

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Flashcards in Chapter 1- Section 3 Deck (10):
0

Alternative choices, whenever making an economic decision

Trade offs

1

Using a ______ is one way to analyze an economic problem

Decision-making grid

2

What does a Decision-making grid force you to consider?

Number of relevant alternatives; requires you to identify the criteria used to evaluate the alternatives; forces you to evaluate each alternative based on the criteria you selected

3

The cost of the next best alternative use of money, time, resources when one choices made rather than another

Opportunity cost

4

A diagram representing various combinations of goods and or services and economy can produce when all productive resources are fully employed

Reduction possibilities frontier

5

No point can be reached outside the curve. Why?

There are no extra resources available to produce; is it called a production possibilities frontier to indicate the maximum combinations of goods and/or services that can be produced

6

A way of thinking about a problem that compares the cost of an action to the benefits received

Cost-benefit analysis

7

One in which consumers and privately owned businesses, rather than the government, make the majority of the what, how, and for whom decisions

Free enterprise economy

8

The quality-of-life based on the position of the necessities and luxuries that make life easier

Standard of living

9

The study of economics help us to become better what?

Decision-makers both in our personal lives and in the voting booths