| A | B |
|---|
| economics | how people satisfy unlimited and competing needs and wants |
| scarcity | fundamental economic problem facing all societies resulting from a combination of scarce resources and people's virtually unlimited needs and wants |
| needs and wants | basic requirement for survival vs something you want to have |
| goods and services | tangelible economic product that is useful vs work or labor performed for someone |
| durable and nondurable goods | good that lasts at least 3 years vs an item that is used up or last less than 3 years |
| value | monetary worth of a good or service as determined by the market |
| utility | ability or capacity of a good or service to be useful and give satisfaction to someone |
| paradox of value | apparent contradiction between the high value of a nonessential item and give satisfaction to someone |
| TINSTAAFL | There is no such thing as a free lunch |
| factors of production | productive resources needed to produce goods |
| land | natural resources |
| labor | people with all their abilities and efforts |
| captial | tools, equipment, and factories used in the production of goods and services |
| entrepreneur | risk taking individuals who introduce new products or services in search of profits |
| human captial | sum of people's skills, abilities, health and motivation |
| production possibilities curve/frontier | diagram representing all possible combinations of goods and or services an economy can produce |
