Word | Definition |
Scarcity | the condition that results from society not having enough resources to produce all the things that people want |
Factors of Production | resources required to produce the things we would like to have such as, LAND, LABOR, CAPITAL, and ENTREPRENEURS |
Economics | the study of how people try to satisfy what seems to be unlimited wants through relatively scarce resources |
Want | basic need related to survival |
Financial Capital | the money used to buy the tools and equipment used in production |
Need | basic requirement for survival like food, clothing, and shelter |
Gross Domestic Product (GDP) | dollar value of all final goods and services; comprehensive measure of total output |
Good | item that is economically useful or satisfies an economic want |
Service | work performed for someone |
Economic Product | goods/services that are useful, relatively scarce, and transferable |
Consumer Good | intended for final use by individuals |
Capital Goods | goods used to produce other goods and services |
Standard of Living | quality of life |
Opportunity Cost | cost of the next best alternative use of money, time, or resources |
Value | worth expressed in dollars and cents |
Trade-off | alternative choices |
Utility | capacity to be useful |
Free Enterprise Economy | businesses make the WHAT, HOW, and the FOR WHOM questions |
Wealth | economic sense, accumulation of the product's that are tangible, scarce, useful, and tangible |
Market | a location or other mechanism that allows buyers and sellers to exchange a certain economic product |
Product Markets | markets where producers sell their goods and services to customers |
Factor Markets | markets where productive resources are bought and sold |