intro to economics: vocab Flashcards
economics
study of how people try to satisfy unlimited wants when there are limited resources
good
items of value that can be seen/touched
service
actions; intangible
resources/factors of production
things used in the production of goods and services
need
basic requirements that are necessary for survival
labor
human effort in the production of goods and services
capital
man made items used in the production of goods and services
land
natural resources used in the production of goods and services
scarcity
1st law
having limited resources to fulfill unlimited wants and needs
opportunity cost
2nd law
what must be given up in order to obtain an item
utility
capacity of good or service to be useful
law of diminishing return
each succeeding unit of an item satisfies a less intense desire than the previous one
maximum satisfaction
ability to get the most use for the least cost
resources
things that are limited in the economy
consumption
use of goods and services
production
creation of goods and services
management
those who choose the mix of resources to manufacture a product or service
three basic questions that all economies have to answer
- what to produce
- how to produce it
- who gets it
margin
one more unit
marginal cost
extra coast of adding one more unit of output
marginal benefit
extra benefit of adding one more unit of output
production possibility curve
all possible output combos between two products
line on production possibility curve name
production possibility frontier
four economic systems
traditional
free market
centrally planned system
mixed
