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