Econ Unit 1- HB Word Scramble
|
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
| Term | Definition |
| Economics | study of choices a person or society makes to satisfy needs and wants |
| Want | a desire; not needed for survival |
| Need | something required to survive |
| Microeconomics | Study of choices made by a single economic actor such as households, companies, individuals |
| Macroeconomics | Study of behavior and statistics of entire economies; example: interest rates, unemployment rate |
| Resources | all the things that can be used to make goods |
| Scarcity | A situation in which human wants are greater than the capacity of available resources to provide for those wants and when a resource has more than one valuable use |
| Shortage | temporary lack of goods or resources |
| Tradeoff | everything you can no longer do or buy because you chose something else |
| Opportunity Costs | the next best thing that you give up in order to get something |
| Factors of Production | resources needed to produce goods and services: land, labor, capital, entrepreneur |
| Land | FOP natural resources examples: trees, water, coal, oil used to produce goods and services |
| Labor | FOP the work people do to produce goods and services |
| Capital | FOP Manufactured items used to make goods and services examples: building, machinery |
| Human Capital | refers to skills and knowledge in the ability to produce |
| Entrepreneurship | FOP person who starts and runs a business (logging company, sawmill, Home Depot) |
| Technology | the use of land, labor and capital to produce goods and services more efficiently |
| Decision making: | refers to the process by which rational consumers seeking their own happiness or utility will make choices |
| Marginal Costs | increase in total cost when producer increases output by one unit |
| Marginal benefit | additional gain from consuming or producing one more unit of a good or service (measured by $ or satisfaction) |
| Utility | is the usefulness of an item and contributes to the value of the item |
| Cost Benefit Analysis | Used to decide whether an action should be taken based on costs and benefits |
| Problem | controversial assumptions used to put monetary value on things as lives or animal habitats saved, etc |
| Goods | can be touched |
| Consumer good | good (our consumption) |
| Capital goods | are tangible assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services |
| Services | cannot be touched |
| Consumers | People who need goods and services |
| Consumption | Process of using goods and services |
| Production Possibilities Curve | Used to show the combination of two products that is possible with a given amount of resources |
| Economic Systems | Classified by who answers three basic questions (what, how, for whom) |
| Traditional Economy | Decisions on three questions are generally repeat decisions made in earlier times or by previous generations |
| Market Economy: | Individuals and businesses own productive resources and decide the three basic questions, Market prices that result from these decisions act as signals to producers, telling them what buyers want, G&S are allocated on the basis of prices |
| Command Economy | An authority such as a feudal lord, a government agency, or central planners decide three basic questions and to whom goods and resources will be allocated |
| Adam Smith | “Father of Capitalism” |
| Specialization | Specialization is when a nation or individual concentrates its productive efforts on producing a limited variety of goods |
| Voluntary Exchange | is the act of buyers and sellers freely and willingly engaging in market transactions |
| Productivity | Efficient use of resources in production |
| Economic interdependence | decisions made by individual affects decisions made by other people or events in one part of the world or economy affect other parts |
| Free competition | keeps prices low and quality high |
| Regulation | using laws to control businesses |
Created by:
abreland
Popular Economics sets