Econ Vocab 1 Flashcards
Wants
desires that can be satisfied by consuming a good or service
Needs
things such as food, clothing, and shelter, that are necessary for survival
Scarcity
the situation that exist when there are not enough resources to meet human wants
Economics
The study of how people choose to use scarce resources to satisfy their wants
Goods
are physical objects that can be purchased, such as food, clothing, and furniture
Services
work that one person performs for another for payment
Consumer
a person who buys goods or services for personal use
Producer
a person who makes goods or provides services
Factors of Production
resources needed to produce goods and services
Land
means all natural resources on or under the ground
Labor
is all the human time, effort, talent used to make products
Capital
Is a producer’s physical resources
Entrepreneurship
Vision, skill, ingenuity, willingness to take risks
Incentives
Benefits that encourage people to act in certain ways
Utility
Benefit of satisfaction gained from using a good or service
Economize
Making decision according to best combination of costs and benefits
Trade-off
Alternative people give up when they make a choice
Opportunity Cost
The value of next best alternative a person gives up
Cost-benefit analysis
Examination of cost, expected benefits of choices
Marginal cost
Additional cost of using one more unit of a good or service.
Marginal benefit
Additional benefit of using one more unit of a good or service
