Economics Chapter 1 Flashcards
A thing that we desire to have
want
anything that is used to produce goods or services. For example, a person’s labor may be used to produce computers, TV sets, and much more, and therefore a person’s labor is a resource
resource
the condition in which our wants are greater than the resources available to satisfy those wants
scarcity
the most highly valued opportunity or alternative forfeited when a choice is made
opportunity cost
a situation in which more of one thing necessarily means less of something else
trade-off
a graphic represntation of all possible combinations of two goods that an economy can produce
production possibilities frontier
rationing device
a means for deciding who gets what portion of the available resources and goods
the science that studies the choices of people trying to satisfy their wants in a world of scarcity
economics
adding one more
marginal
something that ecourages or motivates a person to take action
incentive
the branch of economics that deals with human behavior and choices as they relate to relatively small units- an individual, a business firm, or a single market
microeconomics
the branch of economics that deals with human behavior and choices as they relate to the entire economy
macroeconomics
an explanation of how something works, designed to answer a question for which there is no obvious answer
theory
able to be felt by touch
tangible
not able to be felt by touch
intangible
anything that satisfies a person’s wants or brings satisfaction; also, tangible products
goods
the quality of bringing satisfaction or happiness
utility
the quality of bringing dissatisfaction of unhappiness
disutility
tasks that people pay others to perform for them
services
all the natural resources found in nature. An acre of land, mineral deposits, and water
land
the physical and mental talents that people contribute to the production of goods and services.
labor
produced goods that can be sed as resources for further production such as factories, machines, and farm tractors
capital
the special talent that some people have for searching out and taking advantage of new business opportunities and for developing new products and new ways of doing things
entrepreneurship
