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14 Cards in this Set
- Front
- Back
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Scarcity |
The condition in which human wants are forever greater than the available supply of time, goods and resources. |
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Resources (factors of production) |
The basic categories of inputs used to produce goods and services. Economists divide into 3 categories: land,labor and capital |
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What are the 3 resources/factors of production |
Land, labor and capital |
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Labor |
The mental and physical capacity of workers to produce good and services. |
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Land |
Any natural resource provided by natural that is used to produce good and services. |
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Capital |
A human-made good used to produce other goods and services. |
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Economics |
The study of how society chooses to allocate it's scare resources to the production of goods and services in order to satisfy unlimited wants. |
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Macroeconomics |
The branch of economics that studies decision making for the economy has a whole. |
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Microeconomics |
The branch of economics that studies decision making by a single individual, household, firm, industry or level of government. |
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Model |
A simplified of reality used to understand and predict relationship between variables |
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Entrepreneurship |
The creative ability of individuals to see profits by taking risks and combining resources to produce innovative products. |
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Normative economics |
An analysis based on value judgement |
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Positive economics |
An Analysis limited statement that are verifiable |
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What is the rule in economics regarding association and causation |
The fact that one event follows another does not necessarily mean that the first event caused the second event |
