Reading...
Play button
Play button
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;
16 Cards in this Set
- Front
- Back
|
the study of how people use their scarce resources to satisfy their unlimited wants
|
economics
|
|
|
a profit-seeker who develops a new product or process and assumes the risk of profit or loss
|
entrepreneur
|
|
|
a condition facing all societies because there are not enough productive resources to satisfy people's unlimited wants
|
scarcity
|
|
|
a simplification of economic reality used to make predictions about the real world
|
economic theory
|
|
|
incremental, additional, or extra; refers to a change in an economic variable, a change in the status quo
|
marginal
|
|
|
(market economics) the study of the factors that influence individual economic choices and how markets coordinate the choices of various decision makers
|
microeconomics
|
|
|
(national economics) study of the economic behavior of the economy as a whole, especially the national economy
|
macroeconomics
|
|
|
the means by which people buy and sell something
|
market
|
|
|
a cost you have already incurred and cannot recover, regardless of what you do now
|
sunk cost
|
|
|
the value of the best alternative passed up for the chosen item or activity
|
opportunity cost
|
|
|
Name the three broad categories that the factors of production are sorted into and give and example of each
|
Human resources-labor
Natural resources-land Capital resources-factories |
|
|
Name three examples of a good
|
book, chair, clothes
|
|
|
Name three examples of a service
|
haircut, dry cleaning, concert
|
|
|
Name the four types of participants in the economy
|
Households, firms, government, and the rest of the world
|
|
|
Draw the Circular Flow Model and explain how the model describes the interaction between households and firms.
|
Households supply human, natural, and capital resources to firms through service markets. In return, households demand goods and services from firms through product markets
|
|
|
Decide on an item or acitvity you would buy or do, list three "opportunity costs" of your decision
|
Play golf on a Saturday Morning
Opportunity costs: Sleep in late Getting coffee with a friend Watching TV |
