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Eco Foundations
Nrhsecovit Vocabulary for Unit one
Question | Answer |
---|---|
want | A thing that we desire to have |
resource | Anything that is used to produce goods and services |
scarcity | is the condition in which our wants are greater than our resources available to satisfy those wants |
opportunity cost | the most highly valued opportunity or alternative foregone when a choice is made |
trade off | a situation in which more of one thing neccessarily means less of something else |
production possibilities frontier | a graphical representation of all possible combinations of two goods that an economy can produce |
rationing device | is a way to decide who gets what and how much of available resources and goods |
incentive | Is a reward, economists think people respond predictably to these. |
microeconomics | one of the branches of economics that studies the behavior and choices of relatively small economic units, such as an individual or a single business firm. |
macroeconomics | one of two branches of economics that studies the behavior and choices as they relate to the entire economy |
economics | social science that studies the choices of people trying to satisfy their wants in a world of scarcity |
TANSTAFL | acronym meaning you cannot get something for nothing |
utility | quality of bringing value or satisfaction |
disutility | quality of bringing no value or dissatisfaction |
factors of production | land,labor,capital and entrepreneurship |
capital | refers to produced goods that can be used as resources for further production, physical and human types. |
land | An acre of woods, mineral deposits, and water in a stream are considered this type of resource |
good | a tangible item that satisfies a person's wants or brings satisfaction |
service | an intangible item, that others perform for you |
labor | type of resource which includes the physical and mental talents that people contribute to the productionof goods and services |
entrepreneurship | the special talent that some people have for searching out and taking advantage of new business opportunities and for developing new products and new ways of doing things. |
cost-benefit analysis | Economists think in terms of this,since every choice has advantage and disadvantage, |
marginal | additional |
externality | unintended side effect |
Three economic questions | What goods to be produced? How will the goods be produced? For whom will the goods be produced? |
free enterprise | economic system in which individuals own most if not all of the resources and control their use, also called capitalism or free market |
socialism | an economic system in which the government controls and may own many of the resources |
economic goals | efficiency,equity,freedom,security,growth, |