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35 Cards in this Set
- Front
- Back
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scarcity
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the condition that results from society not having enough resources to produce all the things people would like to have
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economics
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the study of how people try to satisfy seemingly unlimited and competing wants through the careful use of repetively scarce resolutions
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need
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a basic requirement for survival, such as food, clothing, and shelter.
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want
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simply something we would like to have but is not necessary for survival
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factors of production
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resources required to produce the things we would like to have
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land
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the "gifts of nature", or natural resources not created by people. Deserts/fields/forest,etc
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captital/capital goods
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the tools, equipment, machinery, and factories used in the production of goods and services
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labor
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a factor of production that is people with their efforts, abilities, and skills
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entrepreneur
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a risktaker in search of profits who does something new with existing resources
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gross domestic product
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the dollar value of all final goods, services, and structures within a country's borders in a 12-month period.
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good
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a useful, tangible item that satisfies a want
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consumer good
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a good intended for final use by individuals
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durable goods
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any good that lasts three years or more when used on a regular basis
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nondurable goods
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an item that lasts for fewer than three years when used on a regular basis
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service
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work that is performed for someone
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value
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worth that can be expressed in dollars and cents
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paradox of value
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Adam smith's beliefs on how markers work: scarcity was necessary for something to have value
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utility
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the capacity to be useful and provide satisfaction
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wealth
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the accumulation of products that are tangible, scarce, useful, and transferable from one person to another
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market
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a location or other mechanism that allows buyers and sellers to exchange a specific product
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factor markets
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where individuals earn their incomes through the buying and selling of factors of production
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product markets
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where individuals spend their income
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economic growth
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it is when a nation's total output of goods and services increases over time
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productivity
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a measure of the amount of goods and services produced with a given amount of resources in a specific period of time
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human capital
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the sum of people's skills, abilities, health, knowledge, and motivation
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division of labor
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a way of organizing work so that each individual worker completes a seperate part of work
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specialization
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factors of production perform only tasks they can do better or more efficiently than others
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economic interdependence
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to rely on others, and others rely on us, to provide most of the goods and services we consume
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trade-offs
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the alternative choices that come with every decision
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oppurtunity cost
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the cost of the next best alternative
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production possibilities frontier
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a diagram representing various combinations of goods and services an economy can produce when all its resources are in use
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economic model
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a simplified equation, graph, or figure showing how something works
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cost-benefit analysis
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a way of comparing the costs of an action to the benefits recieved
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free enterprise economy
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market economy in which privately owned businesses have the freedom to operate for a profit with limited gov, intervention
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standard of living
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the quality of life based on ownership of necesities and luxuries that make life easier
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