Economics Chapter 2

Front 1

Economizing Problem

Back 1

1. Society's economic wants(unlimited)
2. Economic Resources (Scarce)

Front 2

Economic resources

Back 2

All natural, human and maunfactured resources that go into the production of goods and services.

Front 3

Land

Back 3

All natural resources that are used in the production process.

Front 4

Capital

Back 4

Capital includes all manufactured aids used in producing consumer goods and services.

Front 5

Labor

Back 5

Labor is a broad term for all the physical and mental talents of individuals available and usable in producing goods and services.

Front 6

Entrepenurial Ability

Back 6

1. Combines resources
2. Makes strategic business decisons
3. Risk bearer

Front 7

Factors of production

Back 7

land,labor,capital and entrepeneurial ability

Front 8

full employment

Back 8

the use of all available resources

Front 9

full production

Back 9

all employed resources must be used so that they provide the maximum possible satisfaction of our economic wants

Front 10

Productive efficiency

Back 10

least-cost production of that particular mix of goods and services wanted by society

Front 11

consumer goods

Back 11

products that satisfy our wants directly

Front 12

capital goods

Back 12

products that satisfy our wants inderectly by making possible more efficient production of consumer goods

Front 13

production of possibilities table

Back 13

lists the different combinations of 2 products that can be produced with a specific set of resources.

Front 14

Law of increasing oppurtunity costs

Back 14

The more of a product that is produced, the greater is its oppurtunity cost

Front 15

economic growth

Back 15

ability to produce a larger total output

Front 16

market system or capitalism

Back 16

the private ownership of resources and the use of markets and prices to coordinate and direct economic activity

Front 17

command system (socialism or communism)

Back 17

government owns most property resourcesand economice decision making

Front 18

economic system

Back 18

a particular set of institutional arrangements and a coordintating mechanishm

Front 19

Resource market

Back 19

the place where resources or the services of resource suppliers are bought and sold

Front 20

Product market

Back 20

the place where goods and service produced by businesses are brougth and sold

Front 21

circular flow model

Back 21

a complex, interelated web of decision making and economic activity involving business and households