Chapter 1 Econ Test Flashcards
Need
Something essential for survival
Want
Something that people desire but. That is not necessary for survival.
Goods
The physical objects that someone produces
Services
The actions or activities that one person perform for another one
Scarcity
The limited amounts of goods and services are available to meet unlimited wants
Economics
Study of how people seek to satisfied their needs and wants by choices
Entrepreneur
A person who decides how to combine resources to create goods and services risky player
Factors of productions
The resources that are used to make goods and services
Shortages
A situation in which consumers want more of a good or service than produces are willing to make a available at a particular price
Land
All natural resources used to produces good and services.
Labor
The effort people devote to tasks for y are paid
Capital
Any human made resources that is used to produce other goods and services.
Trade-off
The act of giving up one benefit in order to gain another , greater benefits
Opportunity cost
The most desirable alternative given up as the result of a decision
Paradox of value
s than a diamond Water has a lot but cost les
Microeconomics
Is the study of individual households and companies behavior
Macroeconomic
Behavior and performance of an economy as a whole .
Durable goods
Is the last 3 years or more when used on a regulars basis ex. Cars , robots , machines
Nondurable goods
Time that last for fewer than 3 years
Ex. Food , writing paper , clothing
Consumer good
Good intended for final used by individuals such as shoes a shirt or automobile
Capital good
Tool or good such as machinery or equipment that’s is used by business to produce other products
