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economics correct answers the study of how people choose to se their limited resources to satisfy their unlimited wants economy correct answers a system used to manage limited resources for the production, distribution, and consumption of goods and services positive economics correct answers the branch of economics that uses objective analysis to find out how the world works; the goal is to describe how things are normative economics correct answers the branch of economics that applies value judgments to data in order to recommend actions or policies; the goal is to advise how things ought to be done scarcity correct answers the condition that results because people have limited resources but unlimited wants tradeoff correct answers the exchange of one benefit or advantage for another that is thought to be better cost- benefit analysis correct answers a way to compare the costs of an action with the benefits of that action; if benefits exceed costs, then the action is worth taking incentive correct answers any factor that encourages or motivates a person to do something prices, taxes, and laws create incentives that influence how people behave goods correct answers physical articles that have been produced for sale or use; three examples are food, clothing, and cars services correct answers work done by someone else for which a consumer, business, or government is willing to pay; three examples are teaching, gardening, and childcare factors of production correct answers the resources used to produce goods and services; economists define these resources as land, labor and capital entrepreneurship correct answers the willingness and ability to take the risks involved in starting and managing a business capital correct answers the tools, machines, and buildings used to produce goods and services productivity correct answers a measure of the efficiency with which goods and services are produced; productivity is often stated as the quantity produced per person per hour opportunity cost correct answers the value of the next best alternative that is given up when making a choice; this is the measure of what you must give up to get what you most want