Every economy must determine what to produce and how it produces goods and services

Every economy must find a way to distribute income equally

Every economy must find ways to privatize markets to maximize efficiency

Every economy must prevent unemployment through government intervention

The production possibilities

The opportunity cost

Scarcity

The absolute advantage

Efficiency

They will decide to study for the exam

The opp. cost is seeing their friends at the beach

The person prefers playing volleyball at the beach to studying for the exam

The Opp Cost of going to the beach is all the other things they could have done

The Opp Cost of going to the beach is being better prepared for the exam.

Resources are scarce in the economy

Resources are not equally suited for the production of both goods

Economic growth is occurring in the economy

Resources are being inefficiently used in the economy

Resources are equally suited for the production of either good

An efficient use of resources

Future output once producers become more efficient

An inefficient use of resources

A combination that cannot be achieved due to scarcity

Full employment of resources in the economy

An increase in the demand for consumer goods

An increase in taxes on consumers

A decrease in unemployment

An increase in the resources to produce capital goods

The efficient production of consumer goods

normal goods

inferior goods

substitute goods

complementary goods

unrelated due to the substitution effect

Supply of cars will increase

supply of auto repair shops will decrease

quantity supplied of cars will increase

The demand for cars will decrease

Car producers will find it more profitable to produce trucks

direct, inverse

inverse, direct

inverse, inverse

direct, direct

strong, weak

a change in the price of a close substitute

a change in consumer incomes

a change in the price of video games

a change in consumer tastes

a change in consumer preferences