Vocabulary Test Write Out Flashcards
want
something that people desire but that is not necessary for survival
need
something essential for survival
goods
the physical objects that someone produces
services
the actions of activities that one person performs for another
scarcity
the principle that limited amounts of goods and services are unavailable to meet unlimited wants
economics
the study of how people seek to satisfy their needs and wants by making choices in the use of scarce resources.
shortage
a situation in which consumers want more of a good or service than producers are willing to make available at a particular price
entrepreneur
a person who decides how to combine resources to create goods and services
factors of production
the resorces that are used to make goods and services
lands
all natural resources used to produce goods and services
labor
the effort people devote to tasks for which they are paid
capital
any human made resource that is used to produce theri goods and services
human capital
the knowledge and skills a worker gains through education and experience
opportunity cost
the most desirable alternative given up as the result of a decision
thinking at the margin
the process of deciding whether to do or use one additional unit of some resource
marginal cost
the extra cost of adding one unit
marginal benefit
the extra benefit of adding one unit
production possibilities curve
a graph that shows alternative ways to use an economy’s productive resources
law of increasing cost
an economic principle which states that as production shifts from making one good or service to another, more and more resources are needed to increase production of the second good or service
technology
any use of land, labor, or capital that produces goods and services more efficiently
entreneurship
ability (and willingness) to start new businesses, to introduce new products and techniques, and to improve management techniques
