Unit 1 Intro To Econ

Front 1

Need

Back 1

something essential for survival

Front 2

Want

Back 2

something desired but not necessary for survival

Front 3

Goods

Back 3

physical products that someone produces

Front 4

Services

Back 4

Actions or activities that one person performs for another

Front 5

Scarcity

Back 5

limited goods and services are available to meet an unlimited amount of wants

Front 6

Economics

Back 6

tthe study of how people satisfy their wants and needs by making choices.

Front 7

Shortage:

Back 7

when consumers want more of a particular good than producers are wiling to make at an available price

Front 8

Entrepreneur

Back 8

person who decides how to combine resources to create goods and services.

Front 9

Factors of production

Back 9

resources used to make goods and services (land ,labor. capital )

Front 10

Land

Back 10

all natural resources used to produce goods and services

Front 11

Labor

Back 11

the effort people devote to tasks to which they are given

Front 12

Capital

Back 12

any human made resource used to produse other goods and services

Front 13

Physical capital

Back 13

the human made objects used to produce goods and services

Front 14

Human capital

Back 14

the knowledge and skills a worker gains through education and experience

Front 15

Tradeoff

Back 15

the actof giving up one benefit for the another greater benefit

Front 16

Guns or butter

Back 16

the government chooses to spend money on domestic or military needs

Front 17

opportunity cost

Back 17

the most desirable alternative given up as the result of a decision

Front 18

thinking at the margin

Back 18

the process of deciding whether to do or use one additional unit of some resource

Front 19

cost/benefit analysis

Back 19

a decision making process in which you compare what you will sacrifice and gain by a specific action

Front 20

marginal cost

Back 20

the extra cost of adding one unit

Front 21

Marginal Benefit

Back 21

the benefit of adding one unit

Front 22

Production Possibilities curve

Back 22

graph that tells alternative ways to use an economys productive resources

Front 23

PRoduction possibilities frontier

Back 23

a line on a production possibilities curve that shows the maximum possible out put an economy can produce

Front 24

efficiency

Back 24

the use of resources to maximize the output of goods and services.

Front 25

Under-utilization

Back 25

the use of fewer resources than an economy is capable of using

Front 26

Law of increasing costs

Back 26

as production switches from one thing to another more and more resources are required to increase production

Front 27

Economic systems

Back 27

structure of methods a society uses to produce goods and services

Front 28

Factor payment

Back 28

the income people recieve for supplying factors of production

Front 29

Profit

Back 29

the amount of money a business recieves in excess of its expenses