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45 Cards in this Set
- Front
- Back
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Economic Products
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goods and services that are useful , relatively scarce and transferable to others.
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A good
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an item that is economically useful / satisfies an economic want. (book,car)
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Consumer good
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intended for final use by individuals
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Capital goods
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manufactured goods used to produce other goods and services
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durable good
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a good that lasts 3 years or more and used on a regular basis.
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non-durable good
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a good that lasts less than 3 years and is used on a regular basis
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service
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work that is performed for someone (intangible)
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Consumer
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person who uses goods and services to satisfy wants and needs
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Value
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a work that can be expressed in dollars and cents.
scarcity is required for this to exist. |
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Paradox of Value
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where necessities have little value and non-necessities have a high value .
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utility
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the capacity to be useful and provide satisfaction
required for something to have value varies form consumer to consumer |
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Wealth
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the accumulation of those products that are tangible, scarce , useful and transferable from one person to another.
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Market
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the key feature to the circular flow of economics. a location or mechanism that allows buyers and sellers to exchange some economic product.
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Factor Markets
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where incomes are earned , where productive resources are bought and sols.
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Product Market
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where producers sell their goods and services to consumers.
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Economic growth
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when the total number of a nation's output of goods and services increase over time .
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Productivity
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a measure of the amount of output produced by a given period of inputs in a specific time .
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Standard of living
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the quality of life based on the possession of the necessities and luxuries that make life easier .
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Division of labor
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takes place when work is arranged so that individual workers do fewer tasks than before.
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Specialization
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when factors of production perform tasks that they can do more easily than others.
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Human Capital
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the sum of the skills , abilities , health and motivation of people .
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economic interdependence
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we rely on others for goods and services as they rely on us.
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Trade offs
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alternative choices , whenever they make an economic decision.
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opportunity cost
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the cost of the next best alternative use of money , time or resources .
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Production Possibilities frontier
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diagram with combinations of what an economy can produce , when all sources are employed.
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cost benefit analysis
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compares the costs of an action to the benefits received
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free enterprise economy
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where the government doesn't make the 3 main production decisions
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Scarcity
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the condition that results from society not having enough resources to produce all the things people would like to have , the fundamental economic problem facing all societies.
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Economics
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is the study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce sources.
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Need
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a basic requirement for survival
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Want
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is a way of expressing a need
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3 basic questions in a society
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what to produce , how to produce it and for whom to produce it for
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Factors of production
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resources required to produce the things we want.
(land , capital , entrepreneurs ) |
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Land
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fertile fields , deserts, mineral deposits, live stock , rain , sun and climate .
is fixed and in limited supply |
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Capital
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tools , equitment and machinery (and factories ) used in the production of goods and services .
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Financial capital
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money used to buy capital
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Labor
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people with all their efforts abilites and skills
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Entrepeneurs
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does something new with existing resources . the driving force of the conomy . they exhibit the ability to start new businesses and bring new products to market .
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Production
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process of creating goods and services ( requires land capitol and labor )
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Economics
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the study of human efforts to satisfy what appear to be unlimited and competing wants through the careful user of relatively scarce sources .
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Gross Domestic Product
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dollar value of all final goods and services and structures produced within a countries borders in a 12 month period .
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Description
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know what the world around us looks like
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analysis
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why things work and how things happen
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explanation
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why something happened as predicted or as not predicted
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prediction
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know the consequences of decisions
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