Ch 1 – Sec. 3 -Economic Choices and Decision Making – Flashcards

An alternative that is available whenever a choice is made.

The cost of the next-best alternative use of money, time, or resources when making a choice.

A diagram representing the maximum combinations of goods and/or services an economy can produce when all productive resources are fully employed. A way of analyzing choices by plotting possible production of two products.

A way of analyzing choices when making decisions by comparing the cost (financial) of an action to its benefits. A decision-making grid is an example.

An economic system is a market economy where private businesses have the freedom to operate for profit with limited government intervention.

A quality of life based upon factors such as income, quality and availability of employment, class disparity, poverty rate, quality and affordability of housing, hours of work required to purchase necessities, gross domestic product, inflation rate, number of vacation days per year, affordable (or free) access to quality healthcare, quality and availability of education, life expectancy, incidence of disease, cost of goods and services, infrastructure, national economic growth, economic and political stability, political and religious freedom, environmental quality, climate and safety.

Simplified version of a complex concept or behavior expressed in the form of an equation, graph, or illustration.