Government

Economics

Supply and Demand

All capital owned by individuals, but not by corporations or governments.

Machinery that meets or exceeds federal safety standards.

The accumulated skill and knowledge of workers.

A shortage is from rising prices; scarcity is from falling prices

A shortage is a lack of all goods and services; scarcity concerns a single item

A shortage can be temporary or long-term, but scarcity always exists

There is no real difference between shortage and scarcity

Opportunity cost is all the alternatives that you give up, trade-off is the next best option that you give up

Trade-off is all the alternatives that you give up, opportunity cost is the next best option that you give up

Show alternative ways to use an economy's resources

Show how a factory can use its workers in different ways

Give engineers a new way of deciding how to build manufacturing plants

the cost of producing the second item becomes less expensive

the cost of producing the second one becomes more expensive

production prices rise much more steeply than do the labor costs