Industrial goods: Products that
are used by industries in
producing goods and services
Industrial services: Acts
performed for business for
Opportunity cost: The benefit that is lost
when you decide to use scarce resources
for one purpose rather than for another
Example: A consumer decides to rent an
apartment, rather than to buy a house.
The opportunity cost of this decision is the
lost benefits of home ownership.
Trade-off: Giving up all or part of one
thing in order to get something else
Example: Managers may be willing to
accept the production of fewer quantities
of a product in order to get workers to
produce higher quality products.
The system by which a nation decides how
to use its resources to produce and
distribute goods and services.