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88 Cards in this Set
- Front
- Back
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Capital Goods
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Buildings, structures, machinery, and tools used in the production process.
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Costs of production
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The total cost of materials, labor, and other inputs required in the manufacture of a product.
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Factors of Production
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Resources that can be used to produce goods and services.
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Production Possibilities Curve
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Shows all of the possible combinations of two goods or services that can be produced with a stated time period, given available resources and technology.
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Consumer Goods
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Finished products - goods and services that people buy.
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Supply Schedule
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This schedule lists each quantity of a product that producers are willing to supply at various market prices.
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Economist
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A person who studies these economic choices.
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Inelastic Supply
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Exists when a change in a good's price has little impact on the quantity supplied.
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Capital Resources
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The manufactured materials used to create products.
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Subsidies
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Payments to private businesses by the government.
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Services
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Actions or activites that are performed for a fee.
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Regulations
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Rules about how companies conduct business.
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Technology
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The use of technical knowledge and methods to create new products or make existing products more efficiently.
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Productivity
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The level of output that results from a given level of input.
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Microeconomics
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The study of economics by looking at multiple players or groups.
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Determinants of Supply
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A nonprice factor that influeces the available supply of a good or a service.
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Resource
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Anything that people use to make or obtain what they want or need.
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Tax
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A required payment of money to the government to help fund government services.
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Producers
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The people that make the things that satisfy consumers' needs and wants.
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Resource Market
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The market in which households exchange resources with businesses and the government.
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Macroeconomics
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The study of economics by looking at multiple players or groups.
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Elastic Demand
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Exists when a small change in a good's price causes a major, opposite change in the quantity demanded.
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Entrepreneur
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A person who attempts to start a new business or introduce a new product - risking economic failure in return for the possibility of financial gain.
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Credit
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Allows consumers to use items before completing payment for the merchandise.
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Microeconomics
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The study of economics by looking at individual actors or players, such as a single consumer or single business.
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Price Stability
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When the overall price level of the goods and services available in the economy is relatively constant.
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Consumer
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Those people who decide to purchase things.
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Command Economy
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Relies on government officials to answer the three basic economic questions.
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Human Resource
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Any human effort exerted during production.
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Mixed Economy
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Combines elements of traditional, market, and command economic models to answer the three basic economic questions.
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Entrepreneurship
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The organizational abilities and risk taking involved in starting a new business or introducing a new product.
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Contracts
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A legally binding agreement, either oral or written, between individuals, such as to buy and sell goods and services.
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Natural Resource
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Items provided by nature that can be used to produce goods and to provide services.
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Substitute Goods
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Goods that can be used to replace the purchase of similar goods when prices rise.
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Economics
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The study of choices that people make to satisfy their needs and wants.
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Scarcity
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A combination of limited economic resources and unlimited wants.
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Goods
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Physical objects to be purchased.
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Democratic Socialism
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The government owns some of the factors of production. Usually limited to electrical utilities and telephone network.
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Trade-Off
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The sacrifice of one good in order to purchase or produce another.
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Substitution Effect
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The tendency of consumers to substitute a similar, lower-priced product for another product that is relatively more expensive.
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Supply
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The quantity of goods and services that producers are willing to offer at various possible prices during a given time period.
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Barter
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The exchange of one set of goods for another.
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Specialization
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The focus on one activity.
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Self-Interest
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The impulse that encourages people to fulfill their needs and wants.
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Product Market
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The market im which producers offer - and consumers purchase - final goods and services.
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Allocate
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To distribute scarce resources - such as money, land, equipment, or labor - in order to satisfy the greatest number of needs and wants.
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Supply Curve
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Plosts on a graph the information from a supply schedule.
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Determinants of Demand
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A nonprice factor that influences the amount of demand for a good or service.
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Market Economy
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Individuals answer the three basic economic questions.
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Efficiency
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The use of the smallest amount of resources to produce the greatest amount of output.
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Full Employment
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The lowest possible level of unemployment in the economy.
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Market
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The free exchange of goods and services.
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Elasticity of Supply
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The degree to which price changes affect the quantity supplied.
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Product Market
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The market im which producers offer - and consumers purchase - final goods and services.
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Law of Supply
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States that producers supply more goods and services when they can sell them at higher prices and fewer goods and services when they must sell them at lower prices.
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Traditional Economy
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Based on custom and tradition.
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Elasticity of Demand
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The degree to which changes in a good's price affect the quantity demanded by consumers.
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Private Property
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Goods that are owned by individuals and by businesses, rather than by the government.
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Interdependence
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When events or developments in one region of the world or sector of the economy influece events or developments in other regions or sectors.
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Inelastic Demand
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Exists when a change in a good's price has little impact on the quantity demanded.
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Income
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The money paid to households by business firms and the government in exhcange for the households' resources.
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Incentive
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Something that encourages you to behave in a particular way.
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Standard of Living
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People's economic well-being as determined by the quantity of goods and services they consume over a period of time.
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Elastic Supply
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Exists when a small change in price causes a major change in the quantity supplied.
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Law of Demand
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The inverse or opposite relationship between price and the quantity demanded.Pur
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Capitalism
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Those economies that are closest to the market model. Individuals own the factors of production.
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Purchasing Power
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The amount of money, or income, that people have available to spend on goods and services.
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Profit
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The amount of money remaining after producers have paid all of their costs.
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Self-Sufficiency
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When people or a society can fulfill all of their needs without outside assistance.
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Income Effect
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Any increase or decrease in consumers' purchasing power caused by a change in price.
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Exchange
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Producers and consumers agree to provide one type of item in return for another.
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Division of Labor
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Assigning a small number of tasks to each worker, enabling workers to increase output through specialization.
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Value
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The worth of a good or service for the puposes of exchange, expressed as the amount of money.
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Authoritarian Socialism or Communism
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Economies that are closest to the pure command model. The government owns or controls nearly all the factors of production.
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Money
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Any item that is readily accepted by people in return for goods and services.
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Competition
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The economic rivalry that exists among businesses selling the same or similar products.
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Complementary Goods
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Goods that are commonly used with other goods.
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Free Enterprise
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A system under which business can be conducted freely with little government intervention.
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Quantity Supplied
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The amount of a good or service that a producer is willing to sell at each particular price.
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Demand
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In economic terms is the amount of a good or service that a consumer is willing and able to buy at various possible prices during a given time period.
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Total Revenue
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-Sometimes called Total Receipts - refers to the total income that a business recieves from selling its products.
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Diminishing Marginal Utility
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When the marginal, or additional, utility of each unit consumed diminishes, or lessens, with each unit.
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Opportunity Cost
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The value of the next best alternative given up to obtain that item.
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Utility
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The usefulness of a product for determing value.
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Product Market
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The market im which producers offer - and consumers purchase - final goods and services.
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Quantity Demanded
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The amount of a good or service that a consumer is willing and able to buy at each particular price during a given time period.
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Demand Schedule
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A way to show the relationship between the price of a good or service and the quantity that consumers demand.
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Demand Curve
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Plots the information given on the demand schedule.
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