| A | B |
|---|
| Value | worth that can be expressed in dollars and cents |
| Economics | study of how people try to satisfy their needs and wants through the use of limited resources |
| Capital | equipment, tools, machinery, and factories used in the production of goods and services |
| Scarcity | condition of not having enough resources to produce all the things people want |
| Opportuity Cost | cost of the next best alternative use of money, time, or resources when one choice is made rather than another |
| wealth | sum of those economic products that are tangible, scarce, useful, and transferable |
| labor | people with all their efforts, abilities, and skills |
| trade-offs | alternative choices by consumers in the marketplace |
| standard of living | quality of life based on the possession of the necessities and luxuries that make life easier |
| good | item that is economically useful or that satisfies an econmic want |
| Paradox of Value | The situation in which some necessities have little value while some non-necessities have much higher value |
| Capital Goods | Manufactured goods needed to produce other goods and services |
| To arrive at an econmic decision, a decision-making grid may be used to evaluate | Alternative choices of action |
| Division of labor is characteristic of | Assembly line production |
| The study of econmics is important because it enables us to | Become better decision makers |
| What are the 3 Economic choices | What to produce, How to produce, and for Whom to produce |
| In The Wealth of Nations, Adam Smith argued what | ability and skills of a nations are its source of its wealth and labor or entrepreneurship as the most important factor of production |
| What concept do economists use to better evaluate a decision | opportunity cost |
| Free Enterprise Economy | where consumers and privately owned businesses answer the three basic econmic questions |
| trade offs | alternative choices |
| production possiblities frontier | diagram representing various combinations of goods and services an economy can produce when all resources are fully employed |
| Waht is econmic interdependence | people's reliance on each other to provide goods and services |
| Specialization | performing on task relatively more efficiently than another |
| For something to have value, it mus | have Utility |
| Human Capital | the sum of the skills, abilities, health, and motivation of people |
| Productivity | A measure of the amount of output produced by a given amount of inputs in a specific period of time |
| Market | Meeting place or mechanism allowing buyers and sellers of an economic product to come together, may be local, regional, national, or global. |
| Service | work that is performed for someone |
| need | a basic requirement of survival |
| land | Factor of production that includes natural resources not created by humans |
| Capital | factor of production that includes tools, equipment, machinery, and factories used in the production of goods and services. |
| What is the fundamental problem of economics | Scarcity |
| What are the four factors of Production | Land, Labor, Capital, entrepreneurs |
| The study of economics includes | description, prediction, and analysis |
| Durable good | any good that lasts three years or more when used regularly |
| factor market | market where productive resources ae bought and sold |
| production | process of creating goods and services |
| Want | way of expressing a need that leads to a preference for some goods over others |
| Consumption | process of using up goods and services to satisfy wants and needs |
| Gross Domestic Product (GDP) | The dollar value of all final goods and services and the most comprehensive measure of a country's total production output |
| Alvin Rice believed that if you have a rudimentary working knowledge of economic concepts, you will be able to | ask questions to gain more knowledge |
| Factors of Production | Land, Capital, Labor, and Entrepreneurs |
