economics chapter 1 Flashcards
Social science that studies how people satisfy unending and competing wants with scarce resources
Economics
People who indulge in the consumption of goods & services
Consumer
The condition that arises because there are not enough resources to meet everyone’s wants
Scarcity
Person who risks their money in search of profit
Entrepreneur
Productive inputs that do the task they are best at
Specialization
Quality of life based on the possession of necessities and luxury items that make life easier
Standard of Living
Economic activities in one area affect other parts of the country or world
Economic Interdependence
Alternative choices given up when choices are made
Trade-Offs
Displays the combination of goods and services a country can produce when all resources are fully utilized
Production Possibilities Frontier
The next best alternative use of money, time, or resources when one choice is made
Opportunity Cost
A tangible commodity
Good
The location or mechanisms that allow buyers and sellers to exchange economic products
Market
Beneficial goods & services that are limited and can be exchanged
Economic Products
Tools, equipment, and factories used to produce goods and services
Capital
Products that exist in abundance and are not owned by anyone
Free Products
