Economics Vocabulary Flashcards
Memory Improvement
Need
Something essential for survival
Want
Physical objects that someone produces
Services
Actions or activities that one person performs for another
Scarcity
Principle that limited amounts of goods & services
Economics
The study of how people seek to satisfy their needs & wants by making choices
Shortage
A situation in which consumers want more of a good or service than producers are willing to make available at a particular price
Entrepreneur
A person who decides how to combine resources to create goods & services
Factors of Production
The resources that are used to make goods & services
Land
All natural resources used to produce goods & services
Labor
The effort people devote to tasks for which they are paid
Human capital
The knowledge & skills a worker gains through education & experience
Trade-Off
The act of giving up one benefit to gain another, greater benefit
“Guns or butter”
A phrase expressing the idea that a country that decides to produce more military goods(“Guns”) has fewer resources to produce consumer goods(“Butter”) & vice versa
Opportunity Cost
The most desirable alternative given up as the result of a decision
Thinking at The Margin
The process of deciding whether to do or use one additional unit of some resource
