Vocab 1
What is a Shortage?
A lack of something that is desired.
What is Comparative Advantage?
The condition that exists when someone can produce a good or service at a lower opportunity cost than someone else.
What is Marginal Utility?
The extra satisfaction or pleasure achieved from an increase of one additional unit of a good or service.
What are Goods?
A physical article that is produced for sale or use.
What is Incentive?
Something that motivates a person to take a particular action.
What is Specialization?
The development of skills or knowledge in one aspect of a job or field of interest.
What is a Resource?
Anything to used to produce an economic service.
What is Economic Equity?
The fairness with which an economy distributes its resources and wealth.
What is the Commerce Clause?
Article I, Section 8 of the US Constitution, which gives Congress the power to regulate interstate trade.
What is Capitalism?
The free market economic system
What is Tradeoff?
The exchange of one benefit or advantage for another that is thought to be better
What is Socialism?
A political and economic philosophy based on a collective or government ownership of a society's resources and means of production, with the goal of achieving social and economic equality.
What is Opportunity Cost?
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 Benefit?
What is gained from something in terms of money, time, experience, or other improvements
What is Absolute Advantage?
The condition that exists when someone can produce a good or service using fewer resources than someone else.
What is Microeconomics?
The study of the economy at the level of individuals, businesses, or households.
What is a Market?
An arrangement that brings buyers and sellers together to do business with each other
What is Macroeconomics?
The study of the workings of the economy as a whole.
What is Division of Labor?
The allocation of separate tasks to different people, based on the principle of specialization.
What is Entrepreneurship?
The willingness and ability to take the risks involved in starting and managing a business.
What is Capital?
The tools, machines, and buildings used to produce goods and services; one of the factors of production.
What is Laissez-Faire?
The principle that government should not interfere with the workings of the economy; a French term meaning "let them do"
What are Services?
Work done by someone else for which a consumer, business, or government is willing to pay
What are Public Works?
Government-financed projects such as dams, highways, and bridges
What is a Curve?
A line representing data points of a graph.