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13 Cards in this Set
- Front
- Back
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condition that arises because society does not have enough resources to produce all the things people would like to have.
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Scarcity
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Land, capital, labor, and entreprenuership.
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Factors of Production.
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Gift of nature
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Land
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The tools, equipment, and factories used in the production of goods and services.
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Capital
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money used to buy the tools and equipment used in production.
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Financial capital
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People work with efforts and skills
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Labor
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risk-taker in search of profits
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Entreprenuer
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alternative choices.
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Trade-offs
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cost of the next best alternative use of money, time or resources when one choice is made rather than another.
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Opportunity Cost
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allocation of scarce resources and nearly all other economic activity stems from ritual, habit, or custom.
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Traditional Economy
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one in which a central authority makes most of the WHAT, HOW, FOR WHOM.
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Command Economy
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people and firsms act in their own best interest to answer to WHAT, HOW, and FOR WHOM questions.
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Market Economy
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means of expressing a need
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Want
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