Unit 5 Flashcards
certain items that are necessary to all life
needs
certain items that you have the desire to own
wants
is the state of being scarce or in short supply, it is normally associated with a shortage of something
scarcity
are in business to make money
producers
want the most out of every dollar they have
consumers
the branch of knowledge concerned with the production, consumption, and transfer of weath
economics
recognize the reality that in order to do one thing, other things have to be given up that would have used those resources instead
opportunity cost
those who study the economy
economists
involves assessing alternatives and assigning values
utility
when you assign values to something
util
are people affected by any decision
stakeholders
in economies involve the relationship between what is produced for sale, the amount of money workers/consumers have, and the amount of spending consumers do
production cycles
is earned by taking part in the production process
income
money gained from land and property ownership
rent
money gained from lending money
interests
money gained from sharing in the profits of a business
dividends
is a demonstrated preference for one choice over another
priority
is a way of breaking down a decision by comparing its negatives and positives
cost benefit analysis
would be whether you save money or whether you pay more for the product
direct consequence
would be the impact that your choice would have on the workers, the quality, and the environment
indirect consequence
a balance made between two desirable but incompatible features; a compromise
trade-offs
when a project proves to be economically feasible, innovative, and sustainable in terms of investing financial resources into the project
economic viability
a result or effect of an action or condition
consequence
capable of working successfully; feasible
viable
the activity or condition of competing
competition
