Economics
Refers to the economic problem of having limited resources with unlimited wants
What is scarcity
Things that people must have to survive
What are needs
Things that people would like to have but can live without
What are wants
were the alternative choices that you give up in favor of the choice you made.
What is trade-offs
What is a tangible good.
Someone who buys goods and services
What is a consumer
Actions done for others in exchange for payment
What are services
Tangible items that people consume or use
What are goods
is an individual who searches for profit in a new field with existing resources.
What is an entrepreneur
This measures the total income of every person and the total spending on the outcomes of goods and services.
What is GDP?
The study of how society chooses to use scarce resources to satisfy its unlimited wants and needs
What is economics?
Wrote the Wealth of Nations. He says the abilities and skills of a nation's people are the source of its wealth.
Who is Adam Smith.
The effort people contribute to the production of goods and services
What is labour
the "gift of nature", includes natural resources that are not created by man.
What is labor.
Everything we do has a cost because resources are limited. TINSTAAFL
What is there is no such thing as a free lunch.
A good that last three or more years.
What is a durable good
graphs exactly how much a producer can make and shows the limit of how much an economy can produce.
What are production possibilities curves
contradiction of what consumers want and what they need
What is Paradox of value
What is GDP (gross domestic product)
Land, Labor, Capital, Entrepreneurs
What are the factors of production
In countries like North Korea, they decide what to produce.
What is the command economy?
the cost of the next best alternative us of money, time, and resources when one choice is made over another.
What is opportunity cost?
tools and machinery are examples of this type of good
What is capital good
As you increase the production of one good, the opportunity cost to produce the additional good will increase.
What is the Law of increasing opportunity cost
The capacity to be useful and provide satisfaction
What is Utility