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EcoCh.1
vocab.
| Question | Answer |
|---|---|
| Economy | A system in which scarce resources are allocated among competing uses. |
| Main Characteristics of Market economist | 1.Self interest 2.Incentives 3.Market Prices and Quantity 4.Institutions |
| Factors of Production | Resources use to produce goods and services; frequently divided into land, capitol, and labor |
| Goods | tangible commodities such as cars or shoes |
| Services | tangible commodities such as haircuts and medical care |
| Production | the act of making goods and services |
| Consumption | the act of using goods and services to satisfy wants |
| Opportunity Cost | The cost of using resources for a certain purpose measured by the benefit given up by not using them n their best alternative use. |
| Production Possibilities Boundary | A curve showing which alternative combinations of commodities can be attained if all available resources are used efficiently; it is the boundary between attainable and unattainable output combinations. |
| Resource Allocation | the allocation of an economy's scarce resources of land, labor, and capital among alternative uses. |
| Microeconomics | the study of the cause and consequences of the allocation of resources as it is affected by the workings of the price system |
| Macroeconomics | the study of the determination of economic aggregates such as total output, the price level, employment and growth |
| Specialization of Labor | The specialization of individual workers in the production of particular goods or services. |
| Division of Labor | the breaking up of the production process into a series of specialized tasks, each done by a different worker. |
| Transnational corporations (TNCs) | Firms that have operations in more than one country; also called multinational enterprises (MNEs) |
| barter | an economic system in which goods and services are traded directly for other goods and services. |
| traditional economy | an economy in which behavior is based mostly on tradition |
| command economy | an economy in which most economic decisions are made bu a central planing authority. |
| free market economy | in economy in which most economic decisions are made by private households and firms |
| mixed economy | an economy in which some economic decisions are made by firms and households and some by the government |
Created by:
June P.