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20 Cards in this Set
- Front
- Back
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Scarcity |
The restricts option and demands choices |
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Opportunity Costs |
To obtain more of one thing, society forgoes the opportunity of getting the next big thing. |
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Utility |
The pleasure, happiness, or satisfaction obtained from consuming a good or service
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Scientific Method |
Observing real world behavior and outcomes, formulating a possible hypothesis, testing it, accepting or rejecting and modifying the hypothesis |
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Economic Principle |
a very well tested and widely accepted theory is referred to as an economic law or .. |
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Microeconomics |
is the part of economics concerned with decision making by individual customers, worker, households, and business firms |
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Macroeconomics |
Examines the performance and behavior of the economy as a whole |
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Aggregate |
a collection of specific economic units treated as if they were one unit |
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Economizing Problem |
the need to make a choice because economic wants exceed economic means |
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Economic Resources |
all natural, human, and manufactured resources that go into the production of goods and services |
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4 Economic Resources |
Land, Labor, Capital, and Entrepreneurial Ability |
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Land |
all natural resources (gifts of nature) used in the production process - forests, mineral and oil deposits, water resources, wind power, sunlight, and arable land |
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Labor |
physical actions and mental activities that people contribute to the production of goods and services - logger, retail clerk, machinist, teacher, professional football player, and nuclear physicist |
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Capital |
includes all manufactured aids used in producing consumer goods and services - factory, storage, transportation, and distribution facilities, as well as tools and machinery |
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investments |
spending that pays for the production and accumulation of capital goods |
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Entrepreneurial Ability |
human resource |
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Entrepreneurs |
perform several critically important economic functions |
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Factor of production |
land labor capital and entrepreneurial ability are combined to produce goods and services that are called this or inputs |
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production possibility table |
list the different combinations of two products that can be produced with a specific set of resources, assuming full employment |
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law of increasing opportunity cost |
production of a particular good increases, the opportunity cost of producing an additional unit rises |
