Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
29 Cards in this Set
- Front
- Back
|
scarcity
|
Exists if we desire more of something than we can have.
|
|
|
economics
|
The study of choice under conditions of scarcity.
|
|
|
resources
|
Basic elements from which all goods and services are produced.
|
|
|
land
|
Natural resources used to create a good or service.
|
|
|
labor
|
Human effort needed to produce a good or service.
|
|
|
capital
|
Tools and equipment needed to produce a good or service.
|
|
|
entrepreneur
|
One who takes a risk and assembles the other factors of production.
|
|
|
incentives
|
Benefits that motivate people to behave in certain ways.
|
|
|
opportunity cost
|
The cost of the second best choice when a decision is made.
|
|
|
production possibilities curve
|
Economic model that shows the maximum combination of goods that can be produced with limited resources.
|
|
|
efficiency
|
Using all resources to their fullest potential.
|
|
|
underutilization (inefficiency)
|
Not using all resources to their fullest potential.
|
|
|
Law of Increasing Opportunity Costs
|
As production moves from one unrelated good to another, more and more of the first good must be given up to obtain the same amount of the alternate good.
|
|
|
macroeconomics
|
The study of the economy at a national or global level.
|
|
|
microeconomics
|
The study of the economy at a local level.
|
|
|
positive economics
|
The reporting of economic information "as it is."
|
|
|
normative economics
|
The reporting of economic information "as it should be."
|
|
|
economic model
|
a simple representation of a complex economic principle
|
|
|
Household |
an individual or group of people who live together and share income. |
|
|
Firm or Business |
a privately owned organization that produces goods and services and sells them to others. |
|
|
Product Market |
Where goods and services are exchanged for money. |
|
|
Factor Market |
where resources are exchanged for money. |
|
|
property right |
claim of legal ownership |
|
|
public goods |
a good or service that can be consumed by many people at once and that other people can't be prevented from using. Provided by government. |
|
|
transfer payments |
expenditures for which the government receives no good, service, or resource in return. |
|
|
Adam Smith |
Father of Economics. Wrote Wealth of Nations Scottish Coined the phrase, "Invisible Hand" |
|
|
Milton Friedman |
American Economist Wrote "Free to Choose" Believed in less government regulation Believed government should control the quantity of money in the economy |
|
|
Karl Marx |
Father of communism German economist Wrote Communist Manifesto Thought resources should be owned by everyone |
|
|
Fredrick Von Hayek |
Austrian Economist Won the Nobel Prize in 1974 Wrote "Road to Serfdom" Believed in a market economy, no central planning |
