Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/30

Click to flip

30 Cards in this Set

  • Front
  • Back
economics
the study of the decisions that go into producing, distributing and consuming goods and services
goods
tangible (touchable) objects that can be collected(golf clubs, food, shoes,etc.)
services
intangible things that people do (teaching, doctors,washing cars, babysitting, lawnmowing)
scarcity
condition where the needs and wants of the people are greater than the resources to satisfy them.
opportunity cost
the value of a second choice that is given up when a first choice is taken
trade offs
choices between alternatives where using resources for one purpose must be at the expense of another purchase
factors of production
the inputs used in the production process:
-natural resources
-labor
-capital
-entreprenuership
production possibilities frontier/graph
a graph showing different attainable combinations of two possible outputs that a given amount of resource can produce.how many products you can make at the same time with your resources and still have a profit.
producers
people who make the products or supply the service
consumers
people who use the products or service
traditional economy
an economic system in which the basic economic Q's (what, how, and for whom)are decided by custom. economic decisions are dictated by the way they were done in the past. Countries have incorpoerated traditional economic features into their current economic system as they have developed
command economy
an economic system in which the decisions on the basic questions are made by the governement
mixed economy
a combination of command and market economies in which the basic economic questions are made both by the government and by private individuals
market economy (capitalism)
an economic system in which the decisions on the basic economic questions are made by private individuals and groups
competition
the battle between businesses to produce goods and services
profit
money that is made from the sale of goods and services goes to the owners of the business
free enterprise
permits any person or group to start and operate their own business
freedom of choice
people may buy what they want to and work where they wish
private ownership
the people own the property, business and economic resources
limited government
the constitution prevents the government from having too much control over the economy
division of labor
dividing production up into specific tasks in order to increase efficiency and to lower costs
specialization
concentrating a person's labor (or other function of production) on a single task in order to increase efficiency
wealth
the total value of accumulated goods and services
3 basic economic questions
-what goods and services should be produced?
-how should these goods and services be produced?
-for whom is the benefit of these goods and services being produced?
natural resources
has not been changed by people. is usally land or something that comes from the land. (raw materials, cotton plant, metals, trees)
labor
contributing human effort in the production process (cotton pickers, manufacturer)
capital
used by labor in making products (machines) usually a man made instrumenet of production such as a tool or machine. Money can also be considered as capital
entrepreneurship/management
takes the risks and responsibilities of starting a business by combining the other factors of production to create a product
needs
things that people must have to survive
wants
things that people would like to have