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15 Cards in this Set

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  • Back
What is called when there is not a lot of something?
Scarcity
What causes scarcity?
Unlimited wants
Limited Resources
What is a need?
Something you have to have in order to survive.
What is a want?
A way of expressing a need.
Why or why not is pizza considered a need? After all, you must have food to survive.
Pizza is considered a want because it is a way of expressing a need. Pizza is not a need because you don't have to have pizza to survive, any food will keep you alive.
What are the 3 basic questions that societies must ask?
WHAT, HOW, and FOR WHOM to produce.
What are the 4 factors of production?
Land, Labor, Capital, and Entrepreneurship
What is the difference between a good and a service?
A good is something tangible that you can buy.

A service is work that you can buy.
What does value mean?
Value is a personal measure of worth.
What is utility?
Utility refers to the capacity of a product to be useful and/or provide satisfaction.
What are the 2 markets discussed in the basic circular flow diagram?
Factor (Resource) and Product Markets
What is the difference between division of labor and specialization?
Division of labor takes place when work is arranged so that workers do fewer tasks than before. (Assembly line)

Specialization occurs when tasks are completed in the most efficient manner by the most efficient factor of production. (Mary can sharpen the head of a pin better than Bob, so Mary will sharpen the pins and Bob will box them.)
What is economic interdependence?
Economic Interdependence is a situation in today's economy where we rely on other countries for certain goods and services and they rely on us for different goods and services.
Define Opportunity Cost
Opportunity cost is the value of the next best alternative.
Define Standard of Living
Quality of life based on the possession of necessities and luxuries that make life easier.