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13 Cards in this Set

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