Economics And Personal Finance (Decisions And Resources)

Front 1

Decision

Back 1

A conclusion reached after considering alternatives and their results

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Resources

Back 2

Things that we have that are in limited supply and which may include personal resources (financial, skill, time) or productive resources.

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Scarcity

Back 3

the condition of not being able to have all the goods and services one wants; there is more want then there are goods

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Wants

Back 4

desires that can be satisfied by consuming or using a good or service.

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Benefits

Back 5

Monetary or non-monetary gain received because of an action taken or a decision made

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Costs

Back 6

What must be given up to obtain something

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Cost-benefit analysis

Back 7

A process of examining the benefits of each available alternatives in arriving at a decision

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Diminishing marginal utility

Back 8

A widely observed relationship in which additional satisfaction associated with consuming additional units of the same product in a given amount of time eventually declines.

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Marginal analysis

Back 9

A decision-making tool for comparing the additional or marginal benefits of a course of action to the additional or marginal costs

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Marginal benefit

Back 10

1. the additional gain from consuming or producing one more unit of a good or service; can be measured in dollars or satisfaction. The benefit gained by consuming one more of something.

2. the change in total benefit resulting from an action.

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Marginal cost

Back 11

1. the increase in a producer's total cost when it increases its output by one unit. The cost incurred by consuming one more of something.

2. the change in total cost resulting from an action

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Factors of production

Back 12

productive resources used to produce goods and services. (natural resources, human, capital, and entrepreneurship)

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Natural resources

Back 13

gifts of nature and exist without human intervention

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Human resources

Back 14

refer to the effort of people which is applied to the production of goods and services

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Capital resources

Back 15

human and capital

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Capital

Back 16

(real or physical) manmade goods, like tools, which are used to produce other goods

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Human capital

Back 17

the skills and knowledge a person has acquired through experience and or education

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Entrepreneurs

Back 18

1. individuals who are willing to take risks, to bring the other resources together and develop new products, and start new businesses.

2. people who take calculated risks in order to start new businesses and develop innovative products and processes

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Unintended consequences

Back 19

the unexpected and unplanned results of a decision or action

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Opportunity cost

Back 20

The second-best alternative (or the value) that must be given up when making a choice

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Trade-offs

Back 21

The giving up of one benefit or advantage in order to gain another regarded as more favorable

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PACED decision-making process

Back 22

A decision-making process designed to help people solve problems in a rational, systematic way. It includes the following steps: State the Problem, List Alternatives, Identify Criteria, Evaluate Alternatives, and Make a Decision.