this exists when demand is greater than the supply
scarcity
the study ow how individuals, families, business and societies use limited resources to fulfill thier unlimited wants.
Economics
resources needed to produce goods and services
factors of production
natural resources present without human intervention, such as land, water, fish, minerals...
land
the work people do
labor
activities done for a fee
services
tangible items that people buy
goods
manufactured goods used to make other goods and services, such as a taxicab. also,
capital (physical)
the ability to produce greater quantities of goods and services in better and faster ways.
productivity
the ability to start a new business, introduce new products and take risks to make a profit by utilizing the factors of production
entrepreneurship
the value of the next best alternative had to be given up to do the action that was chosen
opportunity cost
exchanging one thing for use of another
trade off
model used by economists so show the maximum combination of goods and services that can be produced from a fixed amount of resources in a given amount of time. Can help businesses determine what to produce
production possibility curve
simplified represenations of the real world
economic models
first step in using a hypothesis is to define the...
problem
an educated guess or prediction
hypothesis
temporary condition of not having enough resources
shortage
any use of land, labor or capital to produce goods more efficiently
technology
everything other than basic survival needs
want
when resources are not used efficiently; aka recession
underutilization
material well being of a person, group or nation
standard of living
the attempt to balance an economic policy so that everyone benefits equally
economic equity
the wise use of available resources so that costs do not exceed benefits
economic efficiency
economic systemin which the government minimizes its interference in the economy
laissez faire
money left after all costs have been paid (wages, taxes, bills...)
profit
desire to make money that motivates people to produce and sell goods
profit incentive
eco system where private individuals own the factors of production
capitalism/market economy
eco system combining characteristics of a command and a market economy (free enterprise with some gov't regulations)
mixed economy
eco system in which individuals own the factors of production (aka capitalism)
free enterprise system
eco system based on customs passed down
traditional economy
eco system in which the gov't owns all of the factors of production
command economy
way in which a nation uses its resoureces to satisfy it people's needs and wants
economic systems
graph showing the maximum combination of goods and services that can be produced from a fixed amount of resources in a given periodof time
production possibilities curve
whatever is owned by an individual instead of the gov't
private property
rivalry among producers or sellers of similar products to win more business
MedTemCP5 Word+Pics
