Economics Chapter Two

Front 1

The conversion of resources into desired goods and services

Back 1

Production

Front 2

Not enough to go around, so choices must be made

Back 2

Scarcity

Front 3

The natural resources that are available from nature, includes location, fertility, mineral deposits, topography, climate, water, and vegetation

Back 3

Land

Front 4

Productive contributions of humans who work

Back 4

Labor

Front 5

The accumulated training and education of workers

Back 5

Human Capital

Front 6

All manufactured resources, including buildings, equipment, machines, and improvements to land that are used for production

Back 6

Physical Capital

Front 7

The component of human resources that performs the functions of raising capital, organizing, managing, and assembling other factors of production, making basic business policy decision and taking risks

Back 7

Entrepreneurship

Front 8

The total pool of applied knowledge concerning how goods and services can be produces

Back 8

Technology

Front 9

The total pool of applied knowledge concerning how goods and services can be produces

Back 9

Technology

Front 10

The case in which a given level of inputs is used to produce the maximum output possible. Alternatively, the situation in which a given output is produced at minimum cost

Back 10

Efficiency

Front 11

Any point below the production possibilities curve, at which the use of resources is not generating the maximum possible output

Back 11

Inefficient Point

Front 12

Any point below the production possibilities curve, at which the use of resources is not generating the maximum possible output

Back 12

Inefficient Point

Front 13

The fact that the opportunity cost of additional units of a good generally increases as people attempt to produce more of that good. This accounts for the bowed out shape of the production possibilities curve

Back 13

Law of Increasing Additional Cost

Front 14

Any point below the production possibilities curve, at which the use of resources is not generating the maximum possible output

Back 14

Inefficient Point

Front 15

The fact that the opportunity cost of additional units of a good generally increases as people attempt to produce more of that good. This accounts for the bowed out shape of the production possibilities curve

Back 15

Law of Increasing Additional Cost

Front 16

The organization of economic activity so that what each person consumes is not identical to what that person produces. An individual may specialize, for example in law or medicine. A nation may specialize in the production of coffee

Back 16

Specialization

Front 17

Any point below the production possibilities curve, at which the use of resources is not generating the maximum possible output

Back 17

Inefficient Point

Front 18

The fact that the opportunity cost of additional units of a good generally increases as people attempt to produce more of that good. This accounts for the bowed out shape of the production possibilities curve

Back 18

Law of Increasing Additional Cost

Front 19

The organization of economic activity so that what each person consumes is not identical to what that person produces. An individual may specialize, for example in law or medicine. A nation may specialize in the production of coffee

Back 19

Specialization

Front 20

The ability to produce a good or service at a lower opportunity cost compared to other producers

Back 20

Comparative Advantage

Front 21

Any point below the production possibilities curve, at which the use of resources is not generating the maximum possible output

Back 21

Inefficient Point

Front 22

The fact that the opportunity cost of additional units of a good generally increases as people attempt to produce more of that good. This accounts for the bowed out shape of the production possibilities curve

Back 22

Law of Increasing Additional Cost

Front 23

The organization of economic activity so that what each person consumes is not identical to what that person produces. An individual may specialize, for example in law or medicine. A nation may specialize in the production of coffee

Back 23

Specialization

Front 24

The ability to produce a good or service at a lower opportunity cost compared to other producers

Back 24

Comparative Advantage

Front 25

The ability to produce more units of a good or service using a given quantity of labor or resource inputs. Equivalently, the ability to produce the same quantity of a good or service using fewer units of labor or resource inputs

Back 25

Absolute Advantage

Front 26

The segregation of resources into different specific tasks. For instance, one automobile worker puts on bumpers, another doors, so on

Back 26

Division of Labor

Front 27

All things from which individuals derive satisfaction or happiness

Back 27

Goods

Front 28

All things from which individuals derive satisfaction or happiness

Back 28

Goods

Front 29

Goods that are scarce, for which the quantity demanded exceeds the quantity supplied at zero price

Back 29

Economic goods