Terms Flashcards
Deciding wether to do or use one addition unit of resource
Thinking at the margin
A phrase that refers to the trade offs that nations face.
Guns or butter
An ambitious leader who creates new goods or services.
Entrepreneur
All human made goods that are used to make others goods.
Physical capital
The effort that people devote to a task.
Labor
Physical objects such as food or phones.
Goods
An Item that we desire, but is not essential to live.
Want
The common sense science of how and why people, businesses, and governments, make the choices they do.
Economics
Everything that is finite or limited in quanity
Scarcity
Using wisely and well what God has given
Stewardship
A tangible physical thing that has a measurable lifespan.
Good
Determined due to the nature of this product.
Intrinsic value
Also known as a schedule, and a popular method of explaining simple relationships between pairs.
Tabular model
In its basic form contains a horizontal and vertical axis
Line graph
This provides a complete visual explanation of how a complete economical system functions
Circular flow model
Land, labor, capital, and entrepreneurship.
Factors of production
The payment made on borrowed money
Interest
When government spending exceeds what is receives in taxes
Budget deficit
The difference between revenues received and costs that go into production
Profit
All payments for labor
Wages
The activity of creating useful goods and services
Consumption expenditures
Household spending on goods and services
Principal of diminishing marginal utility
Or graph that shows an alternative way to use an economies resources
Production possibilities curve
The willingness of consumers to purchase a product, and the actual act of purchasing it.
Demands
Goods that experience an increase in demand because of an increase in consumer income
Normal goods
Goods that are used in households in replace of others
Substitute goods
Goods that are usually purchased or used together.
Complementary goods
Items grant see a decline in sales as consumer income decreases.
Inferior goods
When a demand curve shifts to the left or to the right.
Change in demands
When government dictates that prices may not rise any higher
Price ceilings
A barrier that prevents a price from falling below the market price.
Price floor
The price at which consumers are willing to take from the market, the exact quantity of a product that suppliers will put in the market.
Market equilibrium price
The willingness of businesses to produce more of their product at any given price.
Increase in supply
Supply fluctuations up or down.
Changes in supply
