Econ Terms Flashcards
The science which studies human behavior as a relationship between ends and scarce means which have alternative uses
Economics
When there isn’t enough of a good or service to meet demand
Scarcity
Money collected by the government to provide services to the community
Taxes
When laborers acquire skills that make them more efficient
Specialization
When a nation’s production increases over time
Economic Growth
Natural resources not created by people
Land
What a good or service is worth (generally expressed in a form of currency)
Value
What you give up when you decide to buy something
Opportunity Cost
The process of creating goods and services
Production
Total value of all goods and services produced in a country
Gross Domestic Product
When prices go up but wages remain constant/ stagnant
Inflation
When more than one producer is selling the same good or service
Competition
When someone performs an act of value for someone else
Service
When the government takes some limited intervention in the economy
Mixed Economy
When the government takes little to no intervention in the economy
Free Enterprise
Location where goods and services are exchanged
Market
Elements necessary to create goods and services
Factors of Production
When there is more than enough of a good or service to go around
Abundance
Desirable goods/ services that are not necessary for human survival
Want
When members of a community depend on each other for needs
Economic Interdependence
Money needed to acquire factors of production
Capital
Comparing the benefits received from a purchase that is made (or not)
Cost Benefit Analysis
Accumulation of tangible and valued products
Wealth
When the government has complete control of the factors of production and the economy
Command Economy
