Final Review Part 2 Flashcards
_____________________________ is the most highly valued, or next best alternative that is forfeited when a choice is made
Opp cost
A(n) _____ explanation of how something works and is designed to answer a q that has no obvious answer
theory
A service is not tangible but ________
intangible
Another word for dissatisfaction or unhappiness is ______
disutility
_____________ are needed to decide who gets what portion of the available goods. Because people compete for the _________, competition is a consequence of scarcity
Rationing devices
A(n) __________ is a gov plan specifying economic activities, such as what goods will be produced and what prices will be charged.
economic plan
The way all the income earned in a country is divided among diff groups of income earners is called _________________
income distribution
economy that’s not purely socialist or capatalist but sorta both
mixed economy
A sense of how the world works
vision
The belief that all value in produced goods is derived from labor
labor theory of value
The diff between the total value of production and the subsistence wages paid to workers, in other words, the difference between the value of a product and the cost to produce it
surplus value
Any good that is owned by an individual or a buisness
private property
Any good that is owned by the gov
public property
Failure to preserve natural resource for short term gain and self interest is known as ____________________
“the tragedy of the commons”
An economic unit of one person or more that sells resources that sells resources and buys goods and services
household
circular flow of econmic activity
The economic relationship that exist between different economic groups in an economy
The way in which a society decides what goods to produce, how to produce goods, and for whom goods will be produced
economic system
____________ is meeting present needs of without compromising the needs of future gen
Sustainability
3 pillars of sustainability are SEE
Social
Environmental
Economic needs
How to keep the economy sustainable
Use resources at a rate lower than the rate at which they are replenished
What goods and services should an economy produce?
should the emphasis be on agriculture, manufacturing or services, should it be sport leisure or housing?
Any place people come together to buy and sell goods or services
market
An economic system in which individuals (not the gov) own most, if not all, the resources and control their use. The government plays only a small part in thee economy
free enterprise
socialism
An economic system in which the government controls and may own many of the resources
A government plan specifying economic activities such as what goods will be produced and what prices will be charged
economic plan
The way all the income earned in a country is divided among different groups of income earners
income distribution
The belief that all value in produced goods is derived from labor
labor theory of value
The difference between the total value of production and the subsistence wages paid to workers
surplus value
The amount of money left over after all the costs of production have been paid. ______ exists whenever total revenue is greater than total cost.
profit
The amount of money by which total cost exceeds total revenue
loss
An agreement between two or more people to do something
contract
A good for which one person’s consumption takes away from another person’s consumption
private good
A good for which one person’s consumption does not take away from another person’s consumption
public good
A public good that individuals can be excluded (physically phrohibited) from consuming, even though it wouldn’t cost anything else to let another person use it (ie seeing a movie/getting a link to a online book)
excludable public good
A public good that individuals cannot be excluded (physically prohibited) from consuming
nonexcludable public good
A person who receives the benefits of a good without paying for it
free rider
An adverse side effect of an act that is felt by others
negative externality
A beneficial side effect of an action that is felt by others
positive externally
The willingness and ability of buyers to purchase different quantities of a good at diff prices during a specific time period
demand
law of demand
A law stating that as the price of a good increases, the quantity demanded of the good decreases, and that as the price of a good decreases, the quantity demanded of the good increases
The # of units of a good purchased at a specific price
quantity demanded
A law stating that as a person consumes additional units of a good, the utility gained from each additional unit of the good will eventually decrease
law of diminishing marginal utility
