| Question |
 |
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| Answer |
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| 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 |
competition |
Buen Viaje lv.2 ch 8
