1st Semester Final - Terms Flashcards
Deciding whether to do or use one additional unit or resource.
Thinking at the Margin
A phrase that refers to what nations face.
Guns or Butter
Ambitious leader who creates new goods and services.
Entrepreneur
All human made goods that are used to create other goods.
Physical Capital
Effort that people devote to a task.
Labor
Physical objects such as goods or phones.
Goods
An item that we desire but it’s not essential to live.
Want
The common sense science of how and why people, business and governments make the choices they do.
Economics
Everything that is finite or limited to quantity
Scarcity
Uses wisely and well of what God has given
Stewardship
To determine the nature of the product.
Intrinsic Value
Also known as schedule, and a popular method of explaining simple relationships between pairs.
Tabular Model
Contains horizontal and vertical axis that can used for many purposes.
Line Graph
This provides a complete visual explanation of how a complete national economic system functions.
Circular Flow Model
Land, labor, capital, and entrepreneurship
Factors of Production
The payment made on borrowed money.
Interest
When a government spending exceeds when it receives in taxes
Budget Deficit
Difference between revenues receive and costs that go in production.
Profit
All payments for labor
Wages
The activity of reacting new and useful services
Consumption Expenditures
Household’s spending on goods and services
Principle of Diminishing Marginal Utility
The willingness of consumers to purchase a product and the actual act of purchasing it.
Demand
Goods that experience an increase in demand because of an increase of consumer’s incomes.
Normal Goods
Goods that households may use in place of others.
Substitute Goods
Goods that are usually purchased that are used together.
Complementary Goods
Items that see in decline in sales as consumers incomes increases.
Inferior Goods
When a demand curve shifts to the left or the right.
Change in Demand
When the government dictates that the prices may not rise any higher.
Price Ceiling
A barrier that prevents prices falling below the market price.
Price Floor
The price at which consumers are willing to take from the market that exact quantity of a product that suppliers that will put into the market.
Market Equilibrium Price
The willingness of business to produce more of their product at any given price.
Increase in Supply
Supply fluctuation up or down
Changes in Supply
A graph that shows alternative ways to use the economy’s resources
Production Possibility Curve
