what is economics Flashcards
Scarcity
Unlimited wants, limited resources
Land
natural resources used to produce goods & services
Labor
human effort used to produce goods & services
Capital
assets used to produce goods & services
Entrepreneurship
person who combines all factors of production to create goods & services
Human capital
knowledge/skill gained by worker through education/experience
Physical capital
goods used to create other goods & services
Command economy
government controls production and output level
Market economy
individuals/businesses make choices
Role of property rights in market economy
defines who gets to own resources and how it’s used
explicit cost
money payed for a choice
implicit cost
lost earnings from a choice
opportunity cost
value of best alternative not chosen
implicit + explicit
