Unit 1 Vocabulary List
Economic Fundamentals
These are the main vocabulary terms covered within Unit 1: Economic Fundamentals. Although knowing
the definitions to all of these terms will help you on the Unit Test, questions will most likely not cover the
definition only. Most questions will deal with applications of the concepts taught.
Scarcity
Production Possibilities Frontier
Mixed/Modern Economy
Trade/Choice
Point of Underutilization
Self-Interest
Trade-Off
Productivity
Competition
Opportunity Cost
Efficiency
Profit Motive
Alternatives/Options
Standard of Living
Private Ownership
Factors of Production/Inputs/
Specialization
Consumer Sovereignty
Division of Labor
Government Regulation
Economic System
Market Failures
3 Basic Economic Questions
Public Good/Service
Economic Efficiency
Safety Net
Economic Freedom
Income Redistribution
Economic Security
Private Property Rights
Economic Equity
Patents
Productive Resources
Land
Labor
Physical Capital/Capital Goods
Human Capital/Human Resources
Entrepreneurship
Good
Service
Allocation of Resources
Marginal Benefits
Marginal Costs
Production Possibilities Curve
Economic Growth/Development
Traditional Economy
Free Market Economy
Centrally Planned Economy
Command Economy