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22 Cards in this Set
- Front
- Back
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Goods |
Item that is economically useful or satisfies a want |
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Consumer |
Person or entity that uses goods to satisfy economic wants and needs |
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Capital |
Used in production of other goods or services |
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Durable Goods |
Intended to last more than 3 years |
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Non-Durable Goods |
Generally last less than 3 years under normal usage, ex: food, writing, paper
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Services |
Work that is performed for someone |
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Consumption |
The process of using up goods and services in order to satisfy wants and needs |
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Value |
Refers to the worth of an object/service that can be expressed in monetary value |
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Paradox of Value |
Diamonds vs. water |
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Utility |
The capacity to be useful or provide satisfaction |
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Wealth |
Accumulation of products/goods that are tangible, scarce, useful, and transferable |
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Adam Smith |
Said that the ability and skills of a nation's people are the source of it's wealth. Also that the Division of labor and new machinery would lead to an increase in the wealth of nations. |
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Factor Markets |
Where resources are bought and sold |
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Product Market |
Where producers sell their goods to consumers |
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Growth |
Occurs when the value of the total output of goods and services increases |
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Productivity |
a measure of the output produced by a given input over a period of time |
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Division of Labor |
takes place when work is arranged so that individual workers do fewer tasks than before |
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Specialization |
Factors of production perform tasks they can do relatively more efficiently than others |
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Human Capital |
The sum of the skills, abilities, health, and motivation of people |
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Investing in the Future |
Spending resources on people and physical capital can eventually lead to increased production and promote economic growth |
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Economic Interdependence |
We rely on others, and others rely on us to provide the goods and services that we consume |
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Laissez-faire |
a policy or attitude of letting things take their own course, without interfering |
