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88 Cards in this Set

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