Chapter 2 - Scarcity Flashcards
scarcity is not the same as blank and is not a blank
poverty, shortage
most basic concept of economics and occurs when the ingredients for producing things that people desire are insufficient to satisfy all wants
scarcity
any activity that results in the conversion of resources into products that can be used in consumption
production
inputs that are used to produce things that people want
resources/factors of production
natural resources or the gifts of nature and is a resource
land
resource that is the human resource
labor
all manufactured resources
ex) machines themselves
physical capital
accumulated training and education of workers resource
human capital
resource of the person who organizes, manages, and assembles the other resources and is the risk taker.The person in charge of the money.
entrepreneurship
all things from which individuals derive satisfaction or happiness
goods
scarce goods, for which the quantity demanded exceeds the quantity supplied at zero price
economic goods
tasks that are performed for someone else and can be referred to as intangible goods
services
to economists, this term is not definable
needs
goods and services on which we place a positive value
wants
people have blank wants
unlimited
highest-valued, next-best alternative that must be sacrificed to obtain something or to satisfy a want
opportunity cost
an example of this is coming to class and giving up sleeping or studying or doing something else
opportunity cost
giving up something to do or get something else
trade off
this graph represents all possible combinations of maximum outputs that could be produced assuming a fixed amount of productive resources of a given quality
production possibilities curve (PPC)
society’s pool of applied knowledge concerning how goods and services can be produced
technology
any point below the production possibilities curve at which the use of resources is not generating the maximum possible output
ineffecient point
as society attempts to produce more of a good, the opportunity cost of additional units of that good generally increases
law of increasing additional cost
the more blank the resources, the more blank the production possibilites curve
specialized, bowed
increases the production possibilities of smart phones and tablet devices and is illustrated in an outward shift of the PPC
economic growth
use of goods and services for personal satisfaction
consumption
the PPC illustrates the trade off between blank and blank consumption
present, future
goods produced for personal satisfaction
consumer goods
goods used to produce other goods
capital goods
forgo consumption goods to produce blank goods then we blank in capital goods which stimulates blank
capital, increase, economic growth
putting money into capital goods is like a blank because it provides room for growth
investment
organization of economic activity among different individuals and regions which leads to greater productivity
specialization
ability to produce a good or service at a lower opportunity cost and is always a relative concept
comparative advantage
ability to produce more units of a good or service using a given quantity of labor or resource inputs
absolute advantage
segregation of resources into different specific tasks
division of labor
When PPC is linear and constant then it does not illustrate the
law of increasing additional cost
When PPC is bowed then it blank illustrate the law of increasing additional cost
does
currency always goes on blank axis in economics
y
