limited amount amount of goods availble to meet unlimited wants.

Study of how ppl seek to satisfy their needs and wants by making choices

when consumers want more goods then producers are willing to make available

Factors of production

resources to goods that include land, labor, capital and physical capital.

any human made resource that is used to produce goods

manmade objects used to make goods ( aka capital gain)

knowledge and skills a worker gains through education and experience

a term that describes the choice between spending money on military or domestic needs

cost/benefit analysis

what one will sacrifice and what they will gain

extra cost of adding 1 unit ( one dollar, one hour etc)

extra benefit of adding the same unit.

production possibilities curve

is a graph showing alterntive ways to use an economy's productive resource.

use of fewer resources then the economy is capable of using

concentration of the productive efforts on a limited number of activites

made by voluntary exchange in markets

hire workers paying salaries for their labor.

have people take part in the product market physical flow.

hope of reward or fear of penalty

centrally planned economy

the government decides what items to produce, how to produce them, and who gets them.

direct contrast to free market systems (

belief that wealth should be evenly distributed througout society

the central government owns and controls all resources and means of production and makes all the economic decisions.

authoritarian governments

limit individual freedom and require strick obediance from citizens

an economy system that has some market based elements and some government involvment (50/50)

period in which a nation moves from one economic system to another

selling enterprises operated by the government to individuals

right of a government to take private property for public use.

study of economic behavior in a nations whole economy

study of economic behavior in smaller units like households.

gross domestic product

total value of all final goods produced in a country annually

proposed laws submitted directly to the public

process for older products becoming out of date

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economics 1-2

Term	Definition
Scarcity	limited amount amount of goods availble to meet unlimited wants.
Economics	Study of how ppl seek to satisfy their needs and wants by making choices
Shortage	when consumers want more goods then producers are willing to make available
Factors of production	resources to goods that include land, labor, capital and physical capital.
Capital	any human made resource that is used to produce goods
physical capital	manmade objects used to make goods ( aka capital gain)
Human capital	knowledge and skills a worker gains through education and experience
guns and butter	a term that describes the choice between spending money on military or domestic needs
cost/benefit analysis	what one will sacrifice and what they will gain
marginal cost	extra cost of adding 1 unit ( one dollar, one hour etc)
marginal benefit	extra benefit of adding the same unit.
production possibilities curve	is a graph showing alterntive ways to use an economy's productive resource.
underutilization	use of fewer resources then the economy is capable of using
specialization	concentration of the productive efforts on a limited number of activites
free market economy	made by voluntary exchange in markets
factor markets	hire workers paying salaries for their labor.
products markets	have people take part in the product market physical flow.
incentive	hope of reward or fear of penalty
centrally planned economy	the government decides what items to produce, how to produce them, and who gets them.
command economies	direct contrast to free market systems (
socialism	belief that wealth should be evenly distributed througout society
communism	the central government owns and controls all resources and means of production and makes all the economic decisions.
authoritarian governments	limit individual freedom and require strick obediance from citizens
mixed economy	an economy system that has some market based elements and some government involvment (50/50)
economic transition	period in which a nation moves from one economic system to another
privatization	selling enterprises operated by the government to individuals
eminent domain	right of a government to take private property for public use.
macro economics	study of economic behavior in a nations whole economy
micro economics	study of economic behavior in smaller units like households.
gross domestic product	total value of all final goods produced in a country annually
referendums	proposed laws submitted directly to the public
obsolescene	process for older products becoming out of date

Created by: Marsinajar

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