Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Economics Ch. 1
| Question | Answer |
|---|---|
| Scarcity | The condition that results from society not having enough resources to produce all the things people would like to have |
| Economics | Social science dealing with the study of how people satisfy seeing unlimited and competing wants with the careful use of scarce resources |
| Need | Basic requirement for survival; includes food, clothing, and/or shelter |
| Want | Ways of expressing or communicating a need; a broader classification than needs |
| Factors of Production | Productive resources that make up the four categories of land, capital, labor, and entrepreneurship |
| Land | Natural resources or "gifts of nature" not created by human effort; one of four factors of production |
| Capital | Tools, equipment,and factories used in the production of goods and services; one of four factors of production |
| Financial Capital | Money used to buy tools and equipment used in production |
| Labor | People with all their abilities and efforts; one of four factors of production, does not include the entrepreneur |
| Entrepreneur | Risk-taking individual in search of profits; one of four factors of production |
| Technology | Any use of land, labor, and capital that produces goods and services efficiently |
| Production | Process of creating goods and services with the combined use of land, capital, labor, and entrepreneur |
| Gross Domestic Production() | |
| Gross Domestic Production(GDP) | The total market value of all final goods and services produced by the domestic economy in a year's time |
| Economic Product | Good or service that is useful, relatively scarce, and transferable to others |
| Good | Tangible economic product that is useful, relatively, scarce, transferable to others; used to satisfy wants and needs |
| Capital Good | Tool,equipment,or other manufactured good used to produce other goods and services; a factor of production |
| Consumer Good | Good intended for final use by consumers rather businesses |
| Service | Work or labor performed for someone; economic product that includes haircuts, home repairs, forms of entertainment |
| Value | Worth of a good or service as determined by the market |
| Pradox of Value | Apparent contradiction between the high value of nonessentials and low value of essentials |
| Utility | Ability or capacity of a good or services to be useful and give satisfaction to someone |
| Wealth | Sum of tangible economic goods that are scarce, useful, and transferable from one person to another; excludes services |
| Market | Meeting place or mechanism allowing buyers and sellers of an economic product to come together; may be local, regional, national, or global |
| Factor Market | Market where productive resources are bought and sold |
| Product Market | Market where goods and services are offered for sale |
| Economic Growth | Sustained period during which a nation's total output of goods and services increases |
| Productivity | Degree to which productive resources are used efficiently; normally refers to labor, but can apply to all factors of production |
| Division of Labor | Division of work into a number of seperate tasks to be performed by different workers; same as specialization |
| Specialization | Assignment of tasks so that each worker performers fewer functions more frequently; same as division of labor |
| Human Capital | Sum of peoples' skills, abilities, health, and motivation |
| Economic Interdependence | Economic activities in one part of the country or world affect what happens elsewhere |
| Trade-Off | Alternatives that must be given up when one is chosen rather than another |
| Opportunity Cost | Cost of the next best alernative use of money, time, or resources when one choice is made rather than another |
| Productive Possibilities Curve | A graph that shows the maximum number of possible units a company can produce if it only produces two products using all of its resources efficiently |
| Production Possibilities Frontier | Diagram representing maximum combinations of goods and/or services an economy can produce when all productive resources are fully employed |
| Cost-Benefit Analysis | Way of thinking that compares the cost of an action to its benefits |
| Free Enterprise Economy | Market economy in which privately owned businesses have the freedom to operate for a profit with limited government intervention; same as private enterprise economy |
| Standard of Living | |
| Quality of life based on ownership of necessities and luxuries that make life easier |
Created by:
600004571