Vocabulary
The study of making decisions based on the resources you have.
Economics
Something that is used in the production of a good or service.
Productive Resource of Factor of Production
Rules and restrictions on economic activity
regulation
What to produce? How to produce it? and For whom to produce it for?
Three basic economic question
A worker doing what he/she is good at
specialization
scarcity
occur naturally, grass, dirt, oil, sunshine, water are all examples
Land
Public goods and services
The economic decisions are made by the buyers and sellers
Market (or Free) economy
The relationship of inputs to outputs
productivity
to distribute according to a plan
allocation
This is always people, the people that get a job/task completed
labor
Redistribution of income
The economic decisions are made by the government or a central power.
Command economy
The economic term for alternative choice
Trade-off
The next best alternative when faced with a choice
opportunity cost
a person who takes a risk by organizing the other three productive resources to create a product or business.
Entrepreneurship
The creation of laws such as copyrights and patents, or policies regarding the sale of property, is the government's way of
protecting private property rights
Virtually every country in the world, economic decisions are made by the buyers, sellers, and government.
Mixed economy
Comparing the marginal costs and marginal benefits are an important part of making one of these.
Rational Decision
a measurement of someone's economic well being, or quality of life
Standard of living
the tools and/or skills that are used to complete a job/task
Capital
Unreasonable prices, lack of competition, too little information can all lead to this
Market Failure
Some factories are owned by private companies and some are owned and run by the government.
Mixed economy