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;
24 Cards in this Set
- Front
- Back
|
wants |
goods and services that people would like to obtain |
|
|
needs |
items that poeple must have to live; food, water, shelter, basic clothing |
|
|
scarcity |
condition that exists because human wants and needs are greater than available resources |
|
|
incentives |
positive and negative rewards that encourage economic behavior such as making purchases or working to increase productivity |
|
|
resources |
items available to produce goods and services to satisfy human needs and wants |
|
|
opportunity costs |
the item or value that is lost when someone makes an economic decision; the next best alternative, the item that is not chosen |
|
|
trade offs |
action of giving up one item or category for another; for example "guns vs butter" |
|
|
factors of production |
land, labor, capital, and entreprenership |
|
|
land |
the earth and all of the resources coming from the land |
|
|
labor |
efforts and abilities of humans used to produce goods and services, mental and physical |
|
|
capital |
tools, equipment, and facilities involved in creating foods and services and getting them to the customer |
|
|
financial capital |
money form savings and investments that finance businesses |
|
|
entrepreneur |
person or individual who organizes the resources for production and distribution, take risks |
|
|
allocation |
the way society deals with scarcity; prices, government regulation, rationing |
|
|
decision making |
choosing between two or more economic options |
|
|
marginal benefits and costs |
what consumers and producers evaluate in making economic decisions; benefits should be greater than costs |
|
|
marginal utility |
the satisfaction and usefulness of adding one unit in production or one more item in consumption |
|
|
consumer |
those who obtain and use goods and services produced by others |
|
|
product |
an economic good that can be used to satisfy needs and wants |
|
|
service |
work performed to satisfy needs and wants |
|
|
specialization |
individuals do specific tasks in the production of goods and services |
|
|
voluntary exchange |
consumers and producers decide which goods and services to exchange and set the prices |
|
|
absolute exchange |
ore person of country can produce more than another in a specific time period; measured in terms of inputs and outputs |
|
|
comparative exchange |
one person or country has a lower opportunity cost in the production of one good or service over another good or service |
