Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
26 Cards in this Set
- Front
- Back
|
Define Scarcity
|
the condition in which our wants are greater than the limited resources available to satisfy those wants.
|
|
|
what are the four resources of economics.
|
Land, labor, capital, and entrepreneurship
|
|
|
Define the resource Land
|
natural such as minerals, forest, water and unimproved land. example...oil, wood or animals
|
|
|
Define the resource Labor
|
consists of the physical and mental talents people contribute to the production process.
|
|
|
Define the resource Capital
|
produced goods that can be used as inputs for further production. like factories, machinery, tools, computers and buildings
|
|
|
Define the resource Entrepreneurship
|
refers to the particular talent that some people have for organizing the resources of land labor and capital to produce goods, seek new business opportunities, and develop new ways of doing things.
|
|
|
Define Rationing Device
|
a means for decidig who gets what of available resources and goods.
|
|
|
Define Opportunity cost
|
The most highly valued opportunity or alternative forfeited when a choice if made.
|
|
|
How do economists think about opportunity cost and behavior
|
the higher the opportunity cost of doing somthing, the less likely it will be done.
|
|
|
What does PPF stand for
|
Production Possibilities Frontier
|
|
|
Define PPF
|
Respresents the possible combinations of two goods that can be produced in a certain period of time under the conditions of a given state of technology and fully employed resources
|
|
|
Define straight line PPF
|
constant opportunity cost
and as more of one good is produced the opportunity cost between two products is constant. |
|
|
Define bowed-Outward PPF
|
= increasing opportunity costs and as more of one good is produced, the opportunity coast between the two products changes.
|
|
|
give example of straint line and bowed- outward PPF
|
straight line is one for one for the products and bowed-outward would be 1 TV to 3/4 of a computer.
|
|
|
Define productive efficiency
|
the condition where the maximum output is produced with given resources and tecnology
|
|
|
Define productive inefficient
|
The condition where less than the mazimum output is produced with given resources and technology. it implies that more of one good can be produced without any less of another good being produced
|
|
|
Define law of increasing opportunity costs
|
As more of a good is produced, the opportunity costs of producing that good increase.
|
|
|
Why does opportunity coast increase as more of the good is produced.
|
people have varying abilities some people are better suited to building houses than other are. you hire the skilled then as more output needed you hire the not so skilled.
|
|
|
Define Law of Demand
|
P rises Qd decreases
P falls Qd increase |
|
|
Define Quantity Demanded
|
the number of units of a good that individuals are willing and able to buy at a particular price during some time period.
|
|
|
Define Ceteris Paribus
|
All other things constant or nothing else changes
|
|
|
Define Demand Schedule
|
numerical tabulation of the Qd of a good at different prices. A demand schedule is the numerical representation of the law of demand.
|
|
|
Exmple of demand schedule
|
price Qd point
4 10 a 3 20 b 2 30 c |
|
|
Define Law of Supply
|
P rises Qs rises
P falls Qs fails ceteris paribus |
|
|
What is Qs
|
Quantity Supplied
|
|
|
supply curves are mostly what slope
|
an upward slope
cost rise when more units produced |
