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Economics
Term | Definition |
---|---|
Economics | The study of how society chooses to use scarce resources to satisfy its unlimited wants. |
Economist | Someone who studies economic theory and applies it to the real world. |
Microeconomics | The study of a single factor of the economy rather than economy as a whole. |
Macroeconomics | The study of an entire economy or one of its principle sectors. |
Consumers | One who buys goods and services for personal use. |
producers | A person, group, or business that makes goods or provides services to satisfy consumers. |
Goods | An object or material that can be purchased to satisfy human wants and needs. |
Resources | Anything used to produce goods or services. |
Services | Any action or activity that is performed for a fee. |
Factors of production | A resource used to peoduce goods and services. |
Natural resources | In economics any material provided by nature that can be used to produce goods and provide services. |
Human resources | Any human activity mental or physical used in any production process. |
Capital resources | An item that is used in the production of other goods and services. |
Capital goods | A building, structure, machine or tool that is used to produce goods and services. |
Consumer goods | A finished product that is consumed by an individual. |
Technology | Scientific and technical techniques used to produce existing products more efficiently. |
Entrepeneurship | The organizational activities and risk taking involved in starting a new business |
Entrepenuer | Someone who undertakes and develops a new business. |
Scarcity | The fundamental condition of economics that results from the combination of limited resorces and unlimited wants. |
Allocate | To distribute scarce resources in order to satisfy the greatest number of needs and wants. |
Productivity | The level of output that results from a given level of input. |
Efficiency | The production of goods and services using the smallest amount of resources for the greatest number of output. |
Division of labor | Division of a complex procedure into small tasks. |
Specialization | The focus of a worker on only one or a few aspects of production. |
Trade off | The sacrifice of one good in order to purchase or produce another. |
Opportunity costs | The value lost by rejecting one use of resources in favor of another. |
Production possibilities curve | A graphic representation showing all of the possible combinations of two goods or services that can be produced in a stated period. |
Exchange | The process by which producers and consumers agree to provide one type of item in return for another. |
Barter | The direct exchange of goods and services without the use of money. |
Money | Any item typically currency that is commonly accepted in exchange for goods. |
Credit | A form of exchange that allows consumers to use items with a promise of repayment over a specified time. |
Value | 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 service. |
Utility | The usefulness of a good or service that contributes to its value. |
Self Suffiencecy | The ability to fulfill all of ones needs without assistance. |
Interdependence | The relationship of a neutral reliance of influence among people. |