Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
56 Cards in this Set
- Front
- Back
|
Need
|
Something people need that is necessary for survival
|
|
|
Want
|
An item we desire but that is not essential for survival
|
|
|
Economics
|
The study of how people seek to satisfy their needs and wants by making choices
|
|
|
Productivity
|
The degree to which resources are being used efficiently
|
|
|
Wage
|
The payment for the service of one unit of labor, usually per hour
|
|
|
Salary
|
A fixed income which is usually paid on a weekly, biweekly, or monthly basis
|
|
|
Producer
|
A person who makes goods and services avaliable to consumers
|
|
|
Consumer
|
A person who buys or uses goods and services
|
|
|
Incentive
|
A reward offered to try to persuade people to make certain economic actions
|
|
|
Underutilization
|
Using fewer resources than an economy is capable of using
|
|
|
Non-Renewable Resources
|
A resource that CANNOT be replaced once it is used (ex. fossil fuels, coal, oil, etc.)
|
|
|
Renewable Resources
|
A resource that IS capable of being naturally restored or replenished
|
|
|
Service
|
Actions one person preforms for another
|
|
|
Good
|
A tanglible object that can be bought and used to meet the needs and wants of consumers
|
|
|
Scarcity
|
Limited resources to meet unlimited wants. Exists because our needs and wants are always greater than our resource supply.
|
|
|
Oppurtunity Cost
|
The most disirable alternative given up as a result of a decision
|
|
|
Trade-Off
|
An alternative we sacrifice when we make a decision
|
|
|
Land
|
All natural resources used to produce goods and services
|
|
|
Capital
|
Any human made resource that is used to produce other goods and services. Either human or physical capital.
|
|
|
Human Capital
|
The knowledge and skills a worker gains through education and experience
|
|
|
Physical Capital
|
Human made objects that create other goods and services
|
|
|
Thinking at the Margin
|
Deciding whether to use one additional unit of some resource
|
|
|
Entrepreneur
|
Ambitious leaders who decide how to combine land, labor, and capital resources to create new goods and services
|
|
|
Shortage
|
NOT the same as scarcity. This occurs when producers will not or cannot offer goods and services at the current prices (can be temporary or long term)
|
|
|
Labor
|
Human effort directed toward producing goods and services (mental and physical efforts)
|
|
|
Production Possibilities Curve
|
A graph that shows alternative ways to use an economy's resources
|
|
|
Production Possibilities Frontier
|
A line on the production possibilities curve that shows maximum possible output for an economy
|
|
|
Fixed Cost
|
A cost that remains the same no matter how many goods are produced
|
|
|
Variable Costs
|
The expenses that change with the number of goods produced
|
|
|
Total Cost
|
Fixed costs plus variable costs
|
|
|
Marginal Costs
|
The extra cost of producing one more unit of a good
|
|
|
Innovation
|
Improving a good or service
|
|
|
Capital Goods
|
Goods or raw materials used to make finished products
|
|
|
Profit
|
The amount of money left over after all the costs of production have been paid
|
|
|
Capitalism
|
An economic system in which private citizens own and use the factors of production
|
|
|
Automation
|
Machines control production
|
|
|
Division of Labor
|
The breaking down of a job into seperate, smaller tasks, which are performed by different workers
|
|
|
Consumer Goods
|
Goods brought into the market and not used in the production of other goods
|
|
|
Free Market Economy
|
Competition is allowed to flourish with a minimum goverment interference
|
|
|
Inventions
|
New goods and services
|
|
|
Adam Smith
|
Father of economics and author of "The Wealth of Nations"
|
|
|
Specialization
|
Takes place when people, businesses, regions, and even countries concentrate on goods and services that they can produce better than anyone else
|
|
|
Law of Deminishing Marginal Returns
|
A level of production in which the marginal product of labor decreases as the number of workers increases
|
|
|
Robotics
|
Machines perform physical tasks
|
|
|
Blue-Collar Worker
|
Working class employee who performs manual or unskilled labor
|
|
|
Invisible Hand
|
Guides the nation's resources to their most productive use and helps the market to self-regulate itself
|
|
|
Assembly Line
|
A manufacturing process in which interchangeable parts are added to a product to create an end product
|
|
|
Market
|
Places where the prices of goods and services are determined as exchange takes place
|
|
|
White-Collar Worker
|
Perform tasks that require less physical labor/skilled workers
|
|
|
Laissez-Faire Economics
|
"to let alone", the government should not interfere in the market place
|
|
|
Consumer Sovereignty
|
The idea that the consumer is the king or ruler of an economy and determines what products will be produced
|
|
|
Competition
|
The struggle between buyers and sellers to get the best products at the lowest prices, keeps cost of production low and quality high
|
|
|
Households
|
In a free market economy, these own the factors of production and are the consumers of goods and services
|
|
|
Firms
|
An orgranization that uses resources to produce a product which it sells, changes factors of production into products
|
|
|
Factor Market
|
Firms purchase the factors of productions in this type of market
|
|
|
Product Market
|
Goods and services produced by firms are purchased by households in this type of market
|
