1. What every student should know to pass the Civics & Economics EOC
Civics & Economics Top 100
What every student should know to pass the Civics & Economics EOC
Goal 7

2. Goal 7: The learner will investigate how and why individuals and groups make economic choices.

3. Factors of Production
Resources necessary to produce goods and services
The four factors of production are natural resources, labor, capital, and entrepreneurs.

4. Natural Resources
Gifts of nature that make production possible

5. Labor
Human effort directed toward producing goods and services

6. Capital
Previously manufactured goods used to make other goods and services

7. Entrepreneurs
Individuals who start new businesses, introduce new products, and improve management techniques

8. Scarcity
Not having enough resources to produce all of the goods and services we would like to have

9. Trade-offs
The alternative you face if you decide to do one thing rather than another

10. Opportunity Costs
The cost of the next best alternative use of time and money when choosing to do one thing rather than another

11. Law of Diminishing Returns
The tendency for a continuing application of effort or skill toward a particular project or goal to decline in effectiveness after a certain level of result has been achieved.

12. Marginal Utility
The additional satisfaction a consumer gains from consuming one more unit of a good or service.

13. Productivity
The degree to which resources are being used efficiently to produce goods and services

14. Specialization
When people, businesses, regions and/or nations concentrate on goods and services that they can produce better than anyone else

15. Division of Labor
The breaking down of a job into separate, smaller tasks to be performed individually

16. Needs
Requirements for survival, such as food, clothing, and shelter

17. Wants
Things we would like to have, such as entertainment, vacations, and items that make life comfortable and enjoyable

18. Cost-Benefit Analysis
Economic model that compares the marginal costs and marginal benefits of a decision

19. Command Economy
An economic system in which the major economic decisions are made by the central government

20. Market Economy
An economic system in which individuals own the factors of production and make economic decisions through free interaction

21. Mixed Economy
An economic system combining the characteristics of more than one type of economy

22. Traditional Economy
An economic system in which the decisions of what, how, and for whom to produce are based on custom or habit