What is Economics?
looks at economic decision making by individuals, households, and businesses.
What is microeconomics?
the development of skills or knowledge in one aspect of a joy or field of interest.
What is specialization?
a society's way of coordinating the production and consumption of goods and services
What is an economic system?
land, labor and capital (and entrepreneurship)
What are factors of production?
the value of the next best alternative that is given up when making a choice; a measure of what you must give up to get what you want
What is opportunity costs?
is the study of how individuals and societies use their limited resources to satisfy their unlimited wants.
What is economics?
the characteristic of a society in which people rely on others for most of the goods and services they want
What is economic interdependence?
the ability to make our own economic decisions without interference from the government, individual choice is not constrained by government or power groups within the economy
What is economic freedom?
All the natural resources, including energy that are used to produce goods and services; one of the factors of production.
What are land resources?
a measure of the goods and services available to each person in a country; measure of economic well-being
What is standard of living?
looks at the way things ought to be. In examining how people make decisions about production and consumption, economists attempt to get beneath the surface of everyday life.
What is normative economics?
The condition that exists when someone can produce a good or service at a lower opportunity cost than someone else.
What is comparative advantage?
Economic decisions are made by a single authority, such as a government agency
What is a command economy?
the tools, machines, and buildings used to produce goods and services
What are capital resources?
a metaphor for how, in a free market economy, self-interested individuals operate through a system of mutual interdependence.
What is the invisible hand?
The economic principle that limited resources force people to make choices and face tradeoffs when they choose
What is Scarcity Forces Tradeoffs Principle?
a government measure that limits international trade, such as a protective tariff or an import quota.
What is a trade barrier?
both the government and individuals play important roles with regard to production and consumption.
What is a mixed economy?
the extra satisfaction or pleasure achieved from an increase of one additional unit of a good or service
What is marginal utility?
The condition that exists when someone can produce a good or service using fewer resources than someone else.
What is absolute advantage?
the idea that people behave in ways that are based on reason and self-interest
What is the rational behavior model?
the act of willingly trading one item or service for another (specialization lead to trade)
What is voluntary exchange?
abstention by governments from interfering in the workings of the free market.
work done by someone else for which a consumer, business, or government is willing to pay.
What is a service?
the act of willingly trading one item or service for another (specialization lead to trade)
What is voluntary exchange?