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16 Cards in this Set
- Front
- Back
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What are the factors of production? |
Land, Capital, Labor, Entrepreneurs |
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How do economists define "opportunity cost"? |
The value of the next best alternative given up |
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What is economics? |
The study of how people try to satisfy seemingly unlimited and competing needs and wants through the careful use of relatively scarce resources |
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What is the basic condition of all resources and goods? |
Scarcity |
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What is the paradox of value? |
Some necessities, like water, have low monetary value while some non-necessities, like diamonds, have very high value |
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What are capital goods? |
A tool or good that is used by businesses to produce other products |
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What does the production possibilities frontier illustrate? |
All various combinations of goods and services an economy can produce when all resources are in use |
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What is specialization? |
Factors of production perform only tasks they can do better or more efficiently than others |
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Where are finished goods sold? |
Product market |
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What kind of goods are durable? |
Products that last 3+ years when used on a regular basis |
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What goods are non durable? |
Products that last less than 3 years when used on a regular basis |
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What is the difference between needs and wants? |
A need is a basic requirement for survival A want is something we would like to have but is not necessary |
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How does an economist define wealth? |
The accumulation of products that are tangible, scarce, have utility, and are transferable. |
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What are the 3 questions every society must answer? |
WHAT to produce, HOW to produce, and for WHOM to produce |
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What is productivity? |
Measure of the amount of goods and services produced with a given amount of resources in a specific period of time |
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What is human capital? |
The sum of peoples skills, abilities, health, knowledge, and motivation |
