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16 Cards in this Set
- Front
- Back
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Need |
Somthing like air. Necessary for survival. |
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Want |
Desire. Not essential to survive. |
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Scarcity |
Occurs when there are limited quantities of resources to meet unlimited needs or desires. |
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Factors of production |
Land, labor, capital, management |
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Human capital |
The skill and knowledge gained by a worker through education and experience. |
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Entrepreneur |
Risk takers in search of a profit that organizes and combines the other factors of production. |
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Trade-off |
An alternative we sacrifice when we make a decision. |
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Opportunity cost |
The most desirable alternative given up as a result of a decision. |
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Production possibilities curve |
A curve that shows alternative ways to use an economy's resources. |
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Production possibilities frontier |
The line one a production possibilities graph that shows the maximum possible output for a specific economy. |
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Efficiency |
Using resources in such a way to maximize the production of goods and services. |
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Underutilized |
Using fewer resources than an economy is capable of using. |
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Goods |
Physical objects such as clothes. |
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Shortage |
Occur when producers will not or cannot offer goods or service at current prices *temporary |
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Labor |
Any effort a person devotes to a task for which the at person is paid. |
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Law of increasing Costa |
As we shift factors of production from making one good or service to another the cost of producing the item increases. |
