Encon Vocab Chapter 1 Flashcards
A person who buys goods or services for personal use.
Consumer
A person who makes goods and provides services.
Producer
Simplified representations of complex economic activities, systems, or problems– to clarify trade-offs.
Economic Model
A graph used to illustrate the impact of scarcity on an economy by showing the maximum number of goods or services that can be produced using limited resources.
Production Possibilities Curve (Fronteir)
The study of how people choose to use scarce resources to satisfy their wants
Economics
The situation that exists when there are not enough resources to meet human wants.
Scarcity
The condition in which economics resources are being used to produce maximum amount of goods and services.
Efficiency
Numerical data of information– to see patterns of behavior.
Statistics
Definition: Economic resources needed to produce goods and services.
- ) Land
- ) Labor
- ) Capital
- ) Entrepreneurship
Factors of Production (FOP)
List & define
Benefits offered to encourage people to act in certain ways.
Incentive
The condition in which economic resources are not being used to their full potential.
Underutilization
The study of the behavior of the economy as a whole and involves topics such as inflation, unemployment, aggregate demand, and aggregate supply.
Macroeconomics
The benefit or satisfaction gained from the use of good and service.
Utility
The study of the behavior of individual players in an economy as a individuals, families and businesses.
Microeconomics
Desires that can be satisfied by consuming a good or service.
Wants
Of a decision is the value of the next-best alternative or, what you give up by choosing one alternative over another.
Opportunity cost
The alternative that you give up when you make an economic choice.
Trade off
