Vocabulary
Define Economics
The study of how people choose to use their limited resources to satisfy their unlimited wants
What tool do economists use to follow a path while conducting research?
The Scientific Method
What is Land?
all natural resources used to produce goods and services.
Traditional Economy Pros and Cons
Pros: socially and environmentally stable
Cons:limited economic growth
Scarcity Forces ____
Tradeoff
Define Market
an arrangement that brings buyers and sellers together to do business with each other.
What tool do economists use to physically represent their data?
Graphs
What is Labor?
the human effort, both physical and mental, used to produce goods and services
Command Economy Pros and Cons
Pros: low unemployment and equality
Cons: limited individual freedom
Cost versus ___
Benefit
Define Scarcity
the condition that results because people have limited resources but unlimited wants.
What tool do scientists use to represent different economic situations?
Economic Models
What is Capital?
the man-made resources used in the production of goods and services.
Market Economy Pros and Cons
Pros: Innovation
Cons:Income Inequality
Thinking at the ___
Margin
Define the Production Equation
Land + labor + capital + entrepreneurship = goods and services.
What is Entrepreneurship?
the ability and willingness to combine other factors (land, labor, and capital) to create new goods or services and take on the risks of business ownership.
Markets coordinate ___
Trade
Define The Invisible Hand
Adam Smith’s metaphor to explain how an individual’s pursuit of economic self-interest can promote the well-being of society as a whole.
Future consequences ___
Count