Natural resources, capital, labor, and entrepreneurs.
What are the factors of production?
100
Useful, tangible products & intangible work for others.
What are goods & services?
100
You cannot spend the same money twice. You cannot consume the same resources twice. Neither you nor your workers can be in two places at once.
What is opportunity cost?
100
Markets function best without much control from this.
What is the government?
100
The government decides what to produce, how to produce it, and for whom to produce it.
What is a command economy?
200
Society's inability to produce all the things people want.
What is scarcity?
200
Things we desire & things we must have to survive.
What are wants & needs?
200
Division of this leads to specialization and economic interdependence, which in turn makes the world a safer place.
What is labor?
200
This mystical image is how Adam Smith described the collective acts of each person acting in his own rational self-interest.
What is the invisible hand, as in the invisible hand of the market?
200
The graph showing the possible combinations of output in a society when it puts all of its factors of production to use.
What is the production possibilities curve?
300
The accumulation of products that are tangible, scarce, useful, and transferable.
What is wealth?
300
Products that last for three or more years of regular use & products that do not.
What are durable & non-durable goods?
300
Comparing the expected advantages and disadvantages from a decision, or making a decision based on its expected consequences is this.
What is a cost-benefit analysis?
300
A nation that loses all its things will rebuild, but a nation that loses its people will deteriorate. Recognizing this, Adam Smith said the skills and abilities of its people are the source of this in any nation.
What is wealth?
300
A system in which individuals make free choices; the purchasing decisions of consumers ultimately decide what is produced, how it is produced, and for whom it is produced.
What is a free market economy, or capitalism?
400
People who start new businesses or bring new products to market.
What are entrepreneurs?
400
Products intended for final use by individuals & products used to make other products.
What are consumer & capital goods?
400
Even time is limited and therefore has value. There is no such thing as this.
What is a free lunch?
400
Markets need controls over these market-distorting forces.
What are monopolies?
400
The graphic way of showing how markets connect individuals and businesses; individuals earn money in factor markets and spend it in product markets; businesses use money from product markets to build more in the factor markets.
What is the circular flow diagram?
500
The total output of goods and services increases over time. This results from obtaining more or better factors of production or increasing the efficiency with which they are used.
What is economic growth?
500
The markets where businesses manufacture products and individuals earn wages & the markets where individuals use those wages to purchase products from businesses.
What are factor markets & product markets?
500
The four key elements of the study of Economics.
What are description, analysis, explanation, and prediction?
500
Some necessities have little cost, but some non-necessities are very expensive. Adam Smith solved this apparent contradiction, recognizing that utility and scarcity are both prerequisites for monetary worth.
What is the paradox of value?
500
The most comprehensive measure of a country's output and economic health.