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21 Cards in this Set

  • Front
  • Back
Economizing Problem
1. Society's economic wants(unlimited)
2. Economic Resources (Scarce)
Economic resources
All natural, human and maunfactured resources that go into the production of goods and services.
All natural resources that are used in the production process.
Capital includes all manufactured aids used in producing consumer goods and services.
Labor is a broad term for all the physical and mental talents of individuals available and usable in producing goods and services.
Entrepenurial Ability
1. Combines resources
2. Makes strategic business decisons
3. Risk bearer
Factors of production
land,labor,capital and entrepeneurial ability
full employment
the use of all available resources
full production
all employed resources must be used so that they provide the maximum possible satisfaction of our economic wants
Productive efficiency
least-cost production of that particular mix of goods and services wanted by society
consumer goods
products that satisfy our wants directly
capital goods
products that satisfy our wants inderectly by making possible more efficient production of consumer goods
production of possibilities table
lists the different combinations of 2 products that can be produced with a specific set of resources.
Law of increasing oppurtunity costs
The more of a product that is produced, the greater is its oppurtunity cost
economic growth
ability to produce a larger total output
market system or capitalism
the private ownership of resources and the use of markets and prices to coordinate and direct economic activity
command system (socialism or communism)
government owns most property resourcesand economice decision making
economic system
a particular set of institutional arrangements and a coordintating mechanishm
Resource market
the place where resources or the services of resource suppliers are bought and sold
Product market
the place where goods and service produced by businesses are brougth and sold
circular flow model
a complex, interelated web of decision making and economic activity involving business and households