Significant Terms
The monetary value of all final goods, services, and structures produced within a country’s borders in a 12-month period.
What is gross domestic product?
Not having enough resources to produce all the things people would like to have.
What is land?
A location or mechanism that allows buyers and sellers to exchange a specific product.
What is a market?
Something desired but is not necessary for survival.
What is a want?
Basic requirement for survival.
What is a need?
Tangible economic product that is useful and transferable to others.
What is a good?
The preoccupation of society with the acquisition of consumer goods.
What is consumerism?
Accumulation of products that are tangible, scarce, have utility, and are transferable from one person to another.
What is wealth?
Resources needed to produce goods.
What are factors of production?
This occurs when a nation's total output of goods and services increases over time.
What is economic growth?
Economic product that lasts fewer than three years when used regularly.
What is a non-durable good?
People with all their efforts, abilities, and skills.
What is labor?
Economic product that lasts at least three years when used regularly.
What is a durable good?
Quality of life.
What is standard of living?
The study of how people try to satisfy seemingly unlimited and competing needs and wants through the careful us of relatively scarce sources.
What is economics?
Alternative that must be given up when one choice is made rather than another.
What are trade-offs?
Comparison of the profits or advantages of an action to the expected price.
What is cost-benefit analysis?
The measure of the amount of output created in a specific time period with a given amount of resources.
What is productivity?
Risk takers in search of profits
What is an entrepreneur?
Worth of a good or service as determined by a market.
What is value?
Examines why goods that are not essential to life can command a much higher price than goods that are essential to life
What is paradox of value?
Ability or capacity of a good or service to be useful and give satisfaction to someone.
What is utility?
Tools, equipment, and factories used in the production of goods and services.
What is capital?
Mutual reliance of the economic activities of one person, company, region, or nation on the activities of the other.
What is economic interdependence?
A diagram that represents various combinations of goods and services an economy develop when all resources are in use.
What is a production possibilities curve?
What is human capital?
A method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency.
What is specialization?
One in which consumers and privately owned businesses, rather than the government, make the majority of the WHAT, HOW, and FOR WHOM decisions.
What is the Free Enterprise Economy?
Something intended for final use by individuals, such as shoes, a shirt, or automobile.
What is consumer good?
The value of the next best alternative given up.
What is opportunity cost?
A way of organizing work so that a separate part of the overall task is completed.
What is division of labor?
All of the resources that businesses use to purchase, rent, or hire what they need in order to produce goods or services.
What is factor market?
Simplified version of a complex concept or behavior expressed in the form of a graph, figure, equation, or diagram.
What is an economic model?
Economic system where final goods or services are sold to businesses and the public sector.
What is product market?