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15 Cards in this Set
- Front
- Back
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Scarcity
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shortage that exists when less of something is available than is wanted at a zero price
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Economic Good
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any item that is scarce
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Free Good
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a good for which there is no scarcity
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Economic Bad
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any item for which we would pay to have less
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Resources, Factors of Production, or Inputs
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goods use to produce other goods, for example, land, labor, and capital
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Land
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all natural resources, such as minerals, timber, and water, as well as land itself
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Labor
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physical and intellectual services of people, including the training, education, and abilities of the individuals in a society
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Capital
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products such as machinery and equipment that are used in production
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Rational self-interest
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means by which people choose the options that give them the greatest amount of satisfaction
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Positive analysis
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analysis of what is
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Normative analysis
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analysis of what ought to be
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Fallacy of compostion
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mistaken assumption that what applies in the case of one applies to many
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Association as Causation
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mistaken assumption that because two events seem to occur together, one causes the other
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Microeconomics
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study of economics at the level of the individual
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Macroeconomics
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study of the economy as a whole
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