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lorenz economics 1
econ words
Term | Definition |
---|---|
economics | study of the choices that people make to satisfy their needs and wants |
economist | person who studies economic choices |
microeconomics | study of the choices made by economic actors such as houseolds companies and individual markets |
macroeconomics | examines the behavior of entire economies |
consumers | the things that statisfy needs and wants |
producers | people who make the things to statisfy needs and wants |
goods | phsyical objects that can be purchased |
services | actions or activities that are performed for a fee |
resources | anything that people use to make or obtain what they need or want |
factors of production | resources that can be used to produce goos and services |
natural resources | items provided by nature that can be used to produce goos and to provide services |
human resources | any human effort exerted during production |
capital resources | manufactured materials use to creat products |
capital goods | buildings structures machinery and tools used in the production process |
consumer goods | the goods and services that people buy |
technology | the use of technical knowledge and methods to create new products |
entrepreneurship | combination of organizational abilities and risk taking involved in starting a new business |
entrepreneur | a person who attempts to start a new business or introduce a new product |
scarcity | the fact that natural or just resources in general are limited |
allocate | distribute resources in order to satisfy the greates number of needs and wants |
productivity | level of output htat results from a give level of input |
efficiency | use of the smalles amount of resources to produce the greates amount of output |
divison of labor | assigning a small nujmber of tasks to each worker |
specialization | specialization of a single job |
trade-off | one good is sacrificed for another good |
opportunity cost | value of the next best alternative that is given up to obatain the prefered |
produciont possibilites curve | shows all the possible combination of two goods or services |
exchange | producers and consumers agree to provide one type of item in return for another |
barter | were two producers come into an agreement to trade with each toher |
money | any item that is readily accpeted by people in return for goods and services |
credit | allows consumers to use items to use product before completely purchasing them |
value | an amount of money or price |
utility | usefulness to a person |
self-sufficiency | when someone can fulfuill all of their needs without outside assistance |
interdependence | the events or developments in one region of the world affect other economies |