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23 Cards in this Set
- Front
- Back
Wants |
Desires that can be satisifked by consuming a good or service |
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Needs |
Thi bgs necessary for survival Food clothing shelter |
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Scarcity |
Exists when there are not enough resources to satisfy human wants |
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Economics |
The study of how individuals and societies satody their unlimited wants with limited resources |
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Factors of production |
The resources needed to produce goods and services |
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Land |
Refers to all natural resources used to produce goods and services Forests water minerals |
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Labor |
Is all of human effort used to produce goods and services |
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Capital |
All the resources made and used by people to produce goods and serviices |
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Entrepreneurship |
Involves the vision skills and risk taking needed to run business |
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Incentives |
Methods used to encourage people to take certain actions |
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Utility |
The benefit or satisfaction received from using a good or service |
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Economize |
Make decisions according to the best combination of costs and benefits |
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Trade-off |
Is the alternative people give up when they make choices |
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Opportunity cost |
The value of something that ijs gojven up to get something else that is wanted |
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Cost-benefit analysis |
Is an approach that weighs the benefits of an action agaijnst it's costs |
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Marginal cost |
The additional cost of using one or.more unit of product |
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Marginal benefit |
The additional satisfacriokn from using one or more unit of a product |
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Production possibilities curve |
Graph to show the impact of scarcity on an economy |
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Law of increasing opportunity costs |
States that as production switches frolm one product to another increasing amoujnts of resources are needed to jncrease production of the second product |
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Microeconomics |
Study of individuals families and businesses jn econ Prices costs profits competition behavior of coknsumers and producers |
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Macroeconomics |
The study of the economy of a whole and is concerned with large scale econ activity Inflation rise in prices unemployment |
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Positive econ |
Eco as it js |
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Normative econ |
Involves judgements of what econ behavior ought to be |