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

1/25

Click to flip

25 Cards in this Set

  • Front
  • Back
absolute advantage
The ability to produce the same quantitiy of a good or service using fewer units of labor or inputs
comparitive advantage
the ability to produce a good or service at a lower opportunity cost compared to other producers
consumption
the use of goods and services for personal satisfaction
consumption
the use of goods and services for personal satisfaction
division of labor
the segregation of a resource into different specific tasks
economic goods
goods that are scarce, for which the quantity demanded exceeds the quantity supplied at a zero price
efficiency
the case in which a given level of inputs is used to produce the mazimum output possible.
entreprenuership
the factor of production involving human resource that perform the funtions of raising capital, organizing, managing, assembling other factors of production, and making basic business policy decisions. a risk taker.
goods
all things from which individuals derive satisfaction or happiness
goods
all things from which individuals derive satisfaction or happiness
goods
all things from which individuals derive satisfaction or happiness
human capital
the accumulated tranint and education of workers
inefficient point
any point below the production possibilities curve at which the use of resources is not generating the maximum possible output
labor
productive contributions of humans who work involves both mental and physical activities
inefficient point
any point below the production possibilities curve at which the use of resources is not generating the maximum possible output
land
the natural resources that are available from nature
law of increasing relative coast
the observation that the opportunity cost of additional units of a good generally increases as society attempts to produce more of that good. this accounts for the bowed-out shape of the PPC
opportunity cost
the highest valued, next best alternative that must be sacrificed to obtain something or to satisfy a want
physical capital
all manufactured resources that are used for production
production
any activity that results in the conversion of resources into products that can be used in consumption
productions possibilty curve
a curve representing all possibly combinations of total output that coul be produced assuming that there is a fixed amount of productive resources or a given quiality and the efficient use of those resources.
scarcity
a situation in which the ingredients for producing the things that people desire are insufficient to satisfy all wants
services
mental or physical labor or help purchased by consumers.
specilization
division of productive activities among persons and regions so that no one individual or one area is totally self sufficient.
technology
society's pool of applied knowledge concerning how goods and services can be produced