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32 Cards in this Set

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A thing that we desire to have.
Want
Anything that is used to produce goods or services.
Resource
The condition in which our wants are greater than the resources available to satisfy those wants.
Scarcity
Scarcity means that we have to make __________?
Choices
When we make choices, we incur __________________?
Opportunity Costs
The most highly valued opportunity or alternative forfeited when a choice is made is called ______________?
Opportunity Cost
The situation in which more of one thing necessarily means less of something else.
Trade-Off
A curve on a chart that shows all possible combinations of two goods that an economy can produce in a certain period of time.
Production Possibilities Frontier
What are two consequences of scarcity?
1.Rationing Devices
2.Competition
A means of deciding who gets what portion of the available resources and goods.
Rationing Device
The science that studies the choices of people trying to satisfy their wants in a world of scarcity.
Economics
In economics, this term means additional.
Marginal
Something that encourages or motivates a person to take action.
Incentive
What are the two branches that economics are divided into?
1.Microeconomics
2.Macroeconomics
The branch of economics that deals with human behavior and choices made by small units such as an individual, a business firm, or a single market.
Microeconomics
The branch of economics that deals with human behavior and choices as they relate to the entire economy.
Macroeconomics
Something that is able to be felt by touch.
Tangible
Not able to be felt by touch.
Intangible
Anything that satisfies a person's wants or brings satisfaction; also, tangible products.
Goods
The quality of bringing satisfaction or happiness.
Utility
The quality of bringing dissatisfaction or unhappiness.
Disutility
Tasks that people pay others to perform for them.
Services
All the natural resources found in nature such as land, mineral deposits and water.
Land
The physical and mental talents that people contribute to the production of goods and services.
Labor
Produced goods that can be used as resources for further production such as factories, machines, and tools.
Capital or Capital Goods
The special talent that some people have for searching out and taking advantage of new business opportunities and for developing new products and new ways of doing things.
Entrepreneurship
What are the four factors of production?
1.Land
2.Labor
3.Capital
4.Entrepreneurship
Who is referred to as the "Father of Modern Economics?"
Adam Smith
What are the three types of incentives?
1.Economic Incentives
2.Social Incentives
3.Moral Incentives
What are the six types of rationing devices covered in class?
1. Price
2. Political favor (clout)
3. Celebrity status
4. 1st come, 1st served
5. Physical appearance
6. Brute force
What is a renewable resource?
A resource that can be drawn on indefinitely if it is replaced. (timber)
What is a non-renewable resource?
A resource that cannot be replenished. (fossil fuels such as oil and coal)