Economics Chapter 1 Vocabulary

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economics

Back 1

the study of the choices that people make to satisfy their needs and wants

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economist

Back 2

a person who studies the economic choices

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microeconomics

Back 3

the study of the choices made by economic actors such as households, companies, and individual markets.

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macroeconomics

Back 4

examines the behavior of entire economies.

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consumers

Back 5

the people who decide to buy things

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producers

Back 6

the people who make things that satisfy consumers' needs and wants

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goods

Back 7

physical objects that can be purchased.

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services

Back 8

actions or activities that are performed for a fee

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resource

Back 9

anything that people use to make or obtain what they need or want

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factors of production

Back 10

resources that can be used to produce goods and services

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natural resources

Back 11

items provided by nature that can be used to produce goods and to provide services

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human resources

Back 12

any human effort exerted during production

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capital resources

Back 13

the manufactured materials used to created products

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capital good

Back 14

the buildings, structures, machinery and tools used in the production process

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consumer good

Back 15

a finished product that is consumed by an individual

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technology

Back 16

the use of technical knowledge and methods to create new products or make existing products more efficiently

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entrepreneurship

Back 17

the combination of organizational abilities and risk taking involved in starting a new business or introducing a new product

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entrepreneur

Back 18

a person who attempts to start a new business or introduce a new product-risking economic failure in return for the possibility of financial gain.

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scarcity

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the most basic problem of economics that forces people to make decisions about how to use resources effectively

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allocate

Back 20

distribute resources in orderto satisfy the greatest number of needs and wants

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productivity

Back 21

the level of output that results from a given input

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efficiency

Back 22

the use of the smallest amount of resources to produce the greatest amount of output

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division of labor

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assigning a small number of tasks to each worker.

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specialization

Back 24

allows each employee to work faster and and to produce a greater number of products

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trade-off

Back 25

the sacrifice of one good in order to purchase or produce another

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opportunity cost

Back 26

the value of the next best alternative that is given up to obtain the preferred item

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production possibilitie curve

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shows all the possible combinations of two goods or services that can be produced within a stated time period

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exchange

Back 28

the process by which producers and consumers agree to provide one type of item in return for another

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barter

Back 29

the direct exchange of goods and services without the use of money

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money

Back 30

any item that is readily accepted by people in return for goods and services

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credit

Back 31

a form of exchange that allows consumers to use items with a promise of repayment over a specified time

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value

Back 32

the worth of a good or service for the purpose of exchange, expressed as the amount of money that a consumer is willing to pay for a good or service

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Utility

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the usefulness of a good or service that contributes to its value

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self-sufficiency

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the ability ro fullfill all of one's needs without assistance

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interdependence

Back 35

the relationship of mutual reliance and influence among people, businesses, industries, regions, and nations