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Related Flashcards
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Cards In This Set
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Fundamental economic problem facing all society, combination of scarce resources & people’s unlimited wants.
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Scarcity
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Study of how people satisfy seemingly unlimited and competing wants with scarce resources.
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Economics
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· What to produce?
· How to produce?
· For whom to produce?
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3 Economic questions
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· Land- Natural resources not man-made.
· Capital-Machinery, factories, equipment.
· Labor- People and their skills/abilities.
· Entrepreneurs- Risk takers, make big changes in economy.
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4 Factors of production and their definition:
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Dollar value of all final goods, services, and structures produced within a country’s borders in a 12 month period.
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Gross Domestic Product
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useful tangible item, book, oven lawnmower, etc…
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Goods
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work performed for someone, haircut, lawnmower service… etc
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Services
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Worth expressed in dollars and cents. Monetary worth of a good or service as determined by the market.
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Value
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Sum of tangible economic goods that are scarce, useful, and transformable from one person to other.
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Wealth
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market where the factors of production are sold and bought.
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Factor market
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Market where goods and services are sold.
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Product market
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a measure of the amount of goods and services produced with a given amount of resources in a specific period of time.
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Productivity
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Factors of production produce tasks they are better at.
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Specialization
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Mutual dependency of one person’s firm’s or region’s economic activities on another’s.
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Economic interdependence
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cost of next best alternative use of money, time, or resources when making a choice. (ex. Instead of buying food you buy an ipod)
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Opportunity cost
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