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18 Cards in this Set

  • Front
  • Back
Need
Something that is necessary for survival
Want
An item that we desire but is not essential to survival
Economics
The study of how people seek to satisfy their needs and wants by making choices
Goods
Physical objects
Services
Actions or activities that one person performs for another
Scarcity
Implies limited quantities of resources to meet unlimited wants
Shortage
Occurs when producers will not or cannot offer goods or services at the current prices
Factors of Production
Land,labor,capital; the three groups of resources that are used to make all goods and services
Land
Natural resources that are used to make goods and services
Labor
The effort that people devote to a task for which they are paid
Capital
Any human-made resource that is used to create other goods and services
Physical capital
All human-made goods that are used to produce other goods and services
Human capital
The skills and knowledge gained by a worker through education and experience
Entrepreneur
Ambitious leader who combines land,labor,and capital to create and market new goods and services
Trade-off
An alternative that we sacrifice when we make a decision
Guns and Butter
A phrase that refers to the trade-offs that nations face when choosing whether to produce more or less military or consumer goods
Opportunity cost
The most desirable alternative given up as the result of a decision
Thinking at the margin
Deciding whether to do or use one additional unit of some resources