Unit 1 Flashcards
Scarcity
Not having enough goods to suit people’s needs
PPC
Production possibility curve Shows what’s possible and impossible to produce using your resources
Underutilization
Resources are not used efficiently and there is not enough supplied
Efficiency
Being able to accomplish something in a given area and time
Capital goods
Manufactured goods used to produce other goods
Consumer goods
Intended for final use by individuals
Service
Jobs we pay others to do
Product market
Market where goods and services are sold
Factor market
Market where factors of product are sold
Factors of production
Land- natural resources not created by humans Labor- people with their efforts abilities and skills Capital -tools equipment and factories used in production Entrepreneurs- risk takers in search of profits
Economics
The study of how people choose to use scarce resources to satisfy unlimited wants
3 basic economic questions
What to produce How to produce For whom to produce
Opportunity cost
The cost of what you give up when an alternative is chosen.
What point(s) on the graph are considered to have underutilization?
D
which point(s) are not available with the current resources
E
What point(s) are considered to be where production is most efficent
A, B, and C
