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34 Cards in this Set
- Front
- Back
Economics |
The study of the choices people and societies make to satisfy their needs and wants with limited resources. |
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Microeconomics |
The study of economic behavior and decision-making in small units. |
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Macroeconomics |
The study of economic behavior and decisions in a nation's whole economy. |
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Needs vs. Wants |
Essential for survival vs. Something that is desired |
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Allocate |
Distribute |
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Shortage |
Consumers want more of a good or service than producers are willing to provide. |
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Consumer Goods |
Finished products that people buy for personal use. |
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Factors of Production |
Land, Labor, Capital
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Land |
Natural resources. |
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Labor |
Human effort exerted for production. |
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Capital goods |
Human made resources that are used to produce other goods for businesses. |
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Entrepeneurship |
Owning a business or creating a product. |
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Productivity |
The level of output that results from a given level of input. |
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Efficiency |
The smallest amount of resources to produce the greatest output. |
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Trade-Offs |
Giving up one benefit to gain another; sacrifice |
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Opportunity Cost |
The value of the item that is sacrificed in a trade-off. |
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Marginal Cost |
The extra cost of adding one unit ex. hiring an additional worker |
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Marginal benefit |
The extra benefit of adding one unit. |
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Production Possibilities Curve |
Shows all possible combinations of goods and resources that can be produced. |
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Specialization |
The focus of a worker on only one aspect. |
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Utility |
Usefulness |
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Three Basic Economic Questions |
What to produce, How to produce, For whom to produce? |
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Types of Exchange |
Credit, Money, Bartering. |
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Traditional Economy |
Oldest and simplest type involving hunting and farming. Small, isolated community. Ex. tribes |
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Free Market |
Synonym: Capital Individual based economy with a lot of economic freedom and a wide variety of goods and services Ex. USA |
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Centrally Planned Economy |
Synonym: Command economies The government determines the economy, and leaves little to no individual choice. Includes socialism and communism |
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Mixed Economies |
All economies have principles of others tied in. There are no pure traditional, free-market, or command economies. |
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Socialism |
Command economy. Government controlled, but allows for some flexibility in economic systems and practices. Limited democratic principles |
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Communism |
Government controlled, Authoritarian government. Little to no individual choice and freedom. |
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Factor Market |
The buying of Factors of Production for businesses. |
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Product Market |
The buying of products through the use of prices. |
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Interdependence |
Individuals or society rely on each other |
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Self sufficiency |
Individuals or society are dependent on themselves |
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Economic Goals for the U.S. |
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