Flashcards in Chapter 1- Section 3 Deck (10):
Alternative choices, whenever making an economic decision
Using a ______ is one way to analyze an economic problem
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
The cost of the next best alternative use of money, time, resources when one choices made rather than another
A diagram representing various combinations of goods and or services and economy can produce when all productive resources are fully employed
Reduction possibilities frontier
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
A way of thinking about a problem that compares the cost of an action to the benefits received
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
The quality-of-life based on the position of the necessities and luxuries that make life easier
Standard of living