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17 Cards in this Set

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Scarcity
The condition in which human wants are forever greater than the available supply of time, goods, and resources
Resources
The basic categories of inputs used to produce goods and services. Resources are also called "factors of prodction" Economists divide resources into three categories: land, labior and capital.
Land
A shorthand expression for any natural resource provided by nature
Labor
The mental and physical capacity of workers to produce goods and services
Entrepreneurship
The creative ability of individuals to seek profits by taking risks and combining resources to produce innovative products.
Capital
The physical plants, machinary, and equipment used to produce other goods. Gapital goods are humanmade goods that do not directly stisfy human wants.
Economics
The study of how society cooses to allocate its scarce resources to the production of goods and services in order to satisfy unlimited wants.
Macroeconomics
The branch of economics that studies decision making for the economy as a whole.
Microeconomics
The branch of economics that studies decision making by a single individual, household, firm, industry, or level of government
Model
A simplified description of reality used to understand and prdict the relationship between variables.
Ceteris paribus
A latin phrase that menas that while certian variables change, "all other things remain unchanged."
Positve economics
An analysis limited to statements that are verifiable
Normative economice
An analysis based on value judgments.
Direct relationship
A positive association between two variables. When one variable increases, the other variable increases, and when one variable decreases, the other variable decreases
Inverse relationship
A negative association between two variables. When one variable increases, the other variable decreases, and when one variable decrease, the other variable increases
Slope
The ratio of the change in the variable on the vertical axis ( the rise or fall) to a change in the variable on the horizontal axis (the run)
Independent relationship
A zero relationship between two variables. When one variable changes, the other variable remains unchanged