Chapter 1: What Is Economics?

Scarcity forces us to make choices. We can't have everything we want, so we are forced to choose what we want most.

33 cards | Total Attempts: 182 | Created by ayanna_dominique | Last updated: Sep 17, 2015 | Total Attempts: 182

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Scarcity

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Front	Back
Scarcity	The fundamental economic problem facing all societies.
Economics	The study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scare resources.
Need	A basic requirement for survival and including food, clothing, and shelter.
Want	A way of expressing a need.
Factors of Production	Productive resources that make up the four categories of land, capital labor, and entrepreneurship.
Land	Natural resources or "Gifts of Nature" not created by human effort; one of four factors of production.
Capital	Tools, equipment, and factories used in the production of goods and services.
Labor	People with their efforts, abilities, and skills.
Entrepreneur	Risk-taker in ssearch of profits who does something new with existing resources.
Production	The process of creating goods and services.
Gross Domestic Product (GDP)	The dollar value of all final goods and services, and structure produced within a country's borders in a 12-month period.
Products	Goods and services that are useful relatively scare, and transferrable to others.
Consumer Good	Intended for final use by individuals.
Good	An item that is economically useful or satisfies an economic want.
Capital Goods	Manufactured goods that are used to produce other goods and services.