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31 Cards in this Set

  • Front
  • Back
Need
Basic necessity for life
Want
any item that we want, but don't need to survive
Goods
physical objects such as clothes/goods
Services
actions or activities that one performs for another
Scarcity
the condition of being able to have all goods and services that you want, a short period of time
Shortage
a situation where goods and services are unavailable, only temperary
Factors of Production
resources that are used to make goods and services
Land
natural resources to make goods and services
Labor
the effort that people devote task which they are paid
Capital
any human made resources that is used to produce other goods and services
Physical Capital
human objects use to create other goods and services
Human Capital
knowledge and skill a worker gain through education and experience
Entrepreneur
ambitious leaders who combine land, labor and capital to create and make new goods and services
Trade- Off
alternative that we sacrifice when we make a decision
Guns or Butter
phrase that refers to trade-off that nations face when choosing whether to produce more or less military or consumer goods
Economic system
method used by society to produce and distribute goods and services
market economy
economy system which decisions on production and consumption of goods and services are based on voluntary exchange
command economy
economy system which a central authority is in command of the economy
centrally planned economy
economy system the central government makes all the decision on the production and consumption of goods and services
mixed economy
economy system with limited government involvement
standard of living
level of economic prosperity
household
a person or group of people living in the same residence
firm
a organization that uses resources to produce a product which it then sells
self-intrest
ones own personal gain
incentive
an expectation that encourages people to behave in a certain way
invisible hand
term economists use to describe the self-regulating nature of the marketplace
Competion
rivalry among sellers to attract customers while lowering cost
Macroeconomics
the study of behavior and decision making of entire economics
Microeconomics
the study of behavior and decision making of small units such as individuals, families and business
Public good
shared good or services which it would be efficient or impractical
Free Rider
someone who would not choose to pay for a certain good or services, but would get the benefits anyway