social 12 (econ)- chapter 1 Flashcards
economics
the study of the choices that people make to satisfy their needs and wants
economist
a person who studies economic choices
microeconomics
the study of the choices made by economic actors such as households, companies, and individual markets
macroeconomics
examines the behavior of entire economics ex: unemployment in the US, GDP
consumers- the people who decide to buy things
producers- the people who make the things that satisfy consumers’ needs and wants
two groups of economic decision makers
goods
physical objects that can be purchased
services
actions or activities that are performed for a fee
resource
anything that people use to make or obtain what they need/want
natural resources
items provided by nature that can be used to produce goods and to provide services
human resources
any human effort exerted during production
capital resources
the manufactured materials used to create products
entrepreneurship
the combination of organizational abilities and risk taking involved in starting a new business or introducing a new product
scarcity
the combination of limited economic resources and unlimited wants
forces people to make to make decisions about how to use resources effectively
basic problem of economics
allocate
to distribute
- what to produce
- how to produce
- for whom to produce
three basic economic questions that must be addressed
productivity
the level of output that results from a given level of input
efficiency
the use of the smallest amount of resources to produce the greatest amount of output
division of labor
assigning a small number of tasks to each worker
specialization
focus on one activity
trade off
one good is sacrificed for another
opportunity cost
the cost of the tradeoff- the value of the next best alternative that is given up to obtain the preferred item
exchange
producers and consumers agree to provide one type of item in return for another
barter
direct trade; people exchange one set of goods for another
money
an item that is readily accepted by people in return for goods and services
- a standardized item that is generally traded for goods or services
- a measure of value that allows both producers and consumers to determine and express worth
- a store of value that can be saved and used to purchase items at a later date
three functions of money
credit
allows consumers to use items before completing payment for the merchandise.
value
can be expressed as an amount of money or price
utility
the usefulness to a person
self-sufficiency
the ability to fulfill all of one’s needs without assistance
interdependence
events or developments in one region of the world or sector of the economy influence events or developments in other regions or sectors.
