| A | B |
|---|
| Economics | the study of the production and distribution of goods and services, it is the study of human efforts to satisfy unlimited wants with limited resources. |
| Microeconomics | The branch of economics that studies the economy of consumers or households or individual firms. |
| Macroeconomics | The branch of economics that studies the overall working of a national economy. |
| Free products | Air, sunshine are and other items so plentiful no one could own them. |
| opportunity cost | When a choice is made about the best use of resources, the alternative that is given up is called the ________ of that choice. |
| economic products | goods and services that are useful, relatively scarce and transferable. |
| good | tangible commodity. These are bought, sold, traded and produced. |
| goals, values & ethics | Beliefs held by people that govern or direct their actions. |
| consumer goods | Goods that are intended for final use by the consumer. |
| capital goods | Man-made items used in the creation of other goods and services (factory, machinery, trucks, etc.). |
| durable goods | Any good that lasts more than three years when used on a regular basis. |
| services | Work that is performed for someone. Service cannot be touched or felt. |
| nondurable goods | Any item that lasts less than 3 years when used on a regular basis. |
| consumers | : people who use these goods and services. |
| producer | An individual or business that uses the factors of production/resources to make goods or services. |
| conspicuous consumption | Use of a good or service to impress others. |
| value | An assignment of worth. The assignment is usually based upon the utility (usefulness) or scarcity of the item (supply and demand). |
| utility | capacity to be useful. Something must be of use to you in order to have utility. Example: Contact lense solution has no utility for someone who does not wear contacts. |
| paradox of value | assignment of the highest value to those things we need the least, like water and the highest things we often don't need at all like diamonds. |
| wealth | the sum collection of those economic products that are tangible, scarce and useful. |
| productivity | the ability to produce vast amounts of goods (economic products) in an efficient manner. |
| market economy | economic system where individuals makes most of the decisions. |
| command economy | economic system where government makes most of the decisions; biggest advantage is job security. |
| traditional economy | - economic system where decisions are based on roles and the way things have always been done. |
| wants | Simply the desires of citizens |
| needs | These are basic requirements for survival like food and water and shelter. |
| scarcity | the fundamental economic problem facing ALL societies. Essentially it is how to satisfy unlimited wants with limited resources. |
| factors of production/resources | land, labor, capital, entreprenuership |
