Definitions Flashcards
What is Scarcity?
Limited resources relative to wants and needs
What are Resources?
Land
Labour
Machinery and other inputs used to produce goods and services
What is a production possibility?
An economic concept explaining scarcity and the need for choices; alternate combinations of the maximum amounts of two different goods goods that can be produced at a particular time period if the economy’s resources are efficiently and fully employed.
What is an opportunity cost?
The best alternative forgone to produce or consume something else; what you give up to get something else.
What is unemployment?
A situation in which resources are not fully used in production.
What is economic growth?
A sustained increase in production, represented by an outward shift of the production possibilities curve.
What are services?
Activities such as haircuts, health care and education that are consumed or used by consumers.
What are consumer goods?
Goods that are consumed by consumers.
What are capital goods?
Goods such as machinery and factories that are used to produce other goods.
What are private goods?
Goods produced or purchased by business firms and individuals.
What are public goods?
Goods produced or purchased by government.
What is a Demand schedule?
A table showing the quantities that consumers are willing to buy at alternative prices during a specified time period.
What is the demand curve?
A graph showing the quantities that consumers are willing to buy at alternative prices during a specified time period.
What is the law of demand?
There is no negative relationship between price and quantity demanded, all other things equal.
What is a supply schedule?
A table showing the quantities that suppliers are willing to sell at alternative prices during a specified time period.
