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30 Cards in this Set

  • Front
  • Back
the study of the decisions that go into producing, distributing and consuming goods and services
tangible (touchable) objects that can be collected(golf clubs, food, shoes,etc.)
intangible things that people do (teaching, doctors,washing cars, babysitting, lawnmowing)
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
production possibilities frontier/graph
a graph showing different attainable combinations of two possible outputs that a given amount of resource can many products you can make at the same time with your resources and still have a profit.
people who make the products or supply the service
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
the battle between businesses to produce goods and services
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
concentrating a person's labor (or other function of production) on a single task in order to increase efficiency
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)
contributing human effort in the production process (cotton pickers, manufacturer)
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
takes the risks and responsibilities of starting a business by combining the other factors of production to create a product
things that people must have to survive
things that people would like to have