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16 Cards in this Set
- Front
- Back
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economics
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the study of how we make desisions in a world where recorces are limited
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needs
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required for survival
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wants
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things we would like to have but not required for survival
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scarcity
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whenever we sont have enough recorces to produce all the things we would like to have
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economic modles
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simplified representations of the real world that are used to explain how the economy works
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trade-off
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the alternative you face if you decide to do one thing rather than the other
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oppertunity cost
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the cost of the next best use of your time or money when you choose to do one thing rather than another
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marginal cost
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the extra cost of producing one additonal unit of output
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marginal benifits
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additionall or extra benefit assosiated with an action
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cost-benifit analysis
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an economic modle that requires you th compare the marginal cost and marginal benefits of a decision
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market economey
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an econoic system in which supply demand and price help people make desisions and locate recorces
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capitalism
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a system in which private citizens own all the means of production
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free enterprise
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economic system in which individuals are allowed to compete for profit woth a minimum of government interferance
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incentive
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rewards that are offered to try to persuade people to take certain economic actions
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ratonal choice
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choosing the alternative that has the gratest vaue from among compatable quality products
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land
labor capital managment |
what are the Factoers of Production?
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