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24 Cards in this Set
- Front
- Back
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Scarcity
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A situation in which resources are limited and can be used in different ways
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Natural resources
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things created by acts of nature and used to produce goods and services
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Labor
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Human effort including both mental and phyisical to produce goods and services
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Physical Capital
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Objects made by humans to produce goods and services
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Human Capital
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the knowledge and skill acquired by a worker through education and experience and used to produce goods and services
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Entrepreneurship
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effort used to coornate the production and sale of goods and services
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Production Possiblily Curve
PPC |
A curve that shows the possible combinations of goods and services available to an economy.
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Market
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An arrangement that allows buyers and sellers to exchange things. A buys exchanges money or an object
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Marginal Change
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A small change in value
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Opportunity Cost
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A measure of something that can take on a different value
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Marginal Benefit
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the extra benefit resulting from a small increase in some activity
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marginal cost
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the additional cost resulting from a small increase in some activity.
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Nominal Value
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the face value of an amount of money
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real value
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the value of an amount of money in terms of the quanity of goods the money can buy
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positive relationship
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relationship in which an increase in the value of one variable increases the value of another variable.
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Negative Relationship
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a relationship in which an increase in the value of one variable will decrease the value of another variable
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Slope of a curve
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the change in the varibale on the vertical axis resulting from a one unit increase.
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Market Equilibrium
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a situation in which the quanity od a product demanded equals the quanity supplied
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Explicit cost
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the firms actual cash payments for its input
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implicit cost
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the opportunity cost of nonpurchased input
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Economic cost
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explicit cost plus the implicit cost
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fixed cost
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cost that does not depend on the quanity produced
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DiseconomiC Scale
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a situaton in which an increase in quanity produced increases the long run average cost of production
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Total revenue
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the money the firm gets by selling its products, equal to the price times the quanity sold.
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