Upgrade to remove ads
Busy. Please wait.
Log in with Clever
or

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever
or

Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.

fundamentals of economics terms

        Help!  

Term
Definition
need   something that is essential for survival, such as food or medical care  
🗑
want   something that we desire but that i not necessary for survival, such as video games or stylish haircuts  
🗑
goods   physical (tangible) objects that someone produces, such as food, clothing, or video games  
🗑
services   actions of activities (intangible) that one person performs for another, such as a hair cut  
🗑
scarcity   the principle that limited amounts of goods and services are available to meet unlimited wants - you cannot have an endless supply  
🗑
shortage   occurs when consumers want more of a good or service than producers are willing to make available at a particular price - - under temporary or long-term circumstances  
🗑
factors of production   the resources used to make all goods or services  
🗑
land   a term that refers to all natural resources used to produce goods and services - materials found in nature, in , or on the land such as oil, iron, coal, water, and forests  
🗑
labor   a terms that refers to the effort people devote to tasks for which they are paid - medical care provider, teacher, technician  
🗑
capital   a term that refers to any human-made resources that is used to produce other goods and services - divided into two types (physical and human)  
🗑
physical captial   human-made objects used to create other goods and services - also referred to as capital goods  
🗑
human capital   the knowledge and skills a worker gains through education and experiences - investing in yourself  
🗑
economics   the study of how people seek to satisfy their needs and wants by making choices  
🗑
guns or butter   a term used to describe one of the common choices facing governments: the choice between spending money on military or domestic needs  
🗑
opportunity cost   the most desirable alternative somebody gives up as a result of a decision  
🗑
production possibilities curve   a graph that shows alternative ways to use an economy's productive resources - points a, b, or and c on guns or butter chart  
🗑
production possibilities frontier   a line that shows combinations of the production of both guns and butter - connects points a, b, and c, on guns or butter chart  
🗑
efficiency   the use of resources in such a way as to maximize the output of goods and services  
🗑
underutilization   the use of fewer resources than the economy is capable of using  
🗑
law of increasing costs   principle that states that as production shifts from making one item to another, more and more resources are necessary to increase production of the second item  
🗑
economic system   the structure of methods and principles a society uses. to produce and distribute goods and services  
🗑
standard of living   level of economic prosperity  
🗑
innovation   the process of bringing new methods, products, or ideas into use  
🗑
traditional economy   relies on habit, custom, or ritual to answer the three basic economic questions  
🗑
market   any arrangement that allows buyers and sellers to exchange things  
🗑
specialization   the concentration of the productive efforts of individuals and businesses on a limited number of activities  
🗑
free market economy   an economic system in which decisions on the three key economic questions are based on voluntary exchange in markets  
🗑
self-interest   somebody's own personal gain  
🗑
competition   the struggle among producers for the dollars of consumers  
🗑
centrally (command) planned economy   an economic system in which the government makes all decisions on the three key economic questions  
🗑
socialism   a range of economic and political systems based on the belief that wealth should be distributed evenly throughout a society  
🗑
communism   a political system in which the government owns and controls all resources and means of production and makes all economic decisions  
🗑


   

Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
 
To hide a column, click on the column name.
 
To hide the entire table, click on the "Hide All" button.
 
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
 
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.

 
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
Created by: jaynahiwen
Popular Economics sets