Section 1
How resources are distributed and produced
Allocate
Facilitates the exchange of goods in an economy
Money
Difference between a consumer and a producer
Consumer: a person who buys a good/service
Producer: a person who sells a good/service
An expert who studies economics for a living
Economist
The basic economic problem
Scarcity
Macroeconomics
Human-made assets/resources to create goods and services
Capital Resource
Are goods that consumers buy to satisfy wants and needs
Consumer Good
Combination of vision, mission, skill development, and risk taking
Entrepreneurship and Entrepreneur (risk taker)
Individual demand, supply, and opportunity costs are all examples of
Microeconomics
Natural Resources
Assigning of different tasks in any economics system
Division of Labor
Measure of economic performance through inputs and outputs
Productivity
Education, healthcare, insurances are all examples of
Services
Act of trading goods and services without money usage
Barter
The value of the next best alternative
Opportunity Cost
Tells how well an economy is by using available resources and technology
Production Possibilities Curve/Frontier (PPC/PPF)
Producing the maximum amount of goods and services to satisfy wants and needs
Efficiency
Supplies, byproducts, and other financial instruments are traded
Exchange
Tangible assets such as building, machinery, and equipment
Capital Good
Arranged between a buyer and a seller to purchase a product
Credit
The study of people’s choices and how they satisfy their unlimited wants and needs
Economics
National priority given to independence achievement
Self-Sufficiency
Difference between specialization and factors of production
Specialization: people concentrate their efforts in what they do best
Factors of Production: resources needed to produce goods and services