| Term | Definition |
|---|
| scarcity | the condition that arises because soceity does not have enough resources to produces all the thing people would like to have |
| factories of productions | are land, capitol, labor, entrepreneurship |
| land | reders to the "gift of nature" or natural resoures not created by man efforts |
| capital | the tools, equipment, and factories used in production of goods and services |
| finanical capital | the money used to buy the tools and equipment used in production |
| labor | people with all their efforts, abilities, and skills |
| economics | is the study of human efforts to satisfy what appears to be limited and competing wants through the careful use of relatively scarce resources |
| trade-offs | alternative choices, when spending their income or time |
| opportunity cost | the cost of the next best alternative use of money, time, or resources when one choice is made rather than another |
| production | model economists use to illustrate the concept of opportunity |
| need | is basic requirement for survival |
| want | is a mean of expressing a need |
| free products | the are so plentiful |
| economic products | goods and services that are useful relatively scare, and transferable to others |
| good | is a tangible commomdity like a book, car, or compact disc player |
| consumer good | ended for final use by individuals |
| capitol goods | manufactured good used to roduce other goods and services |
| durable good | any good that lasts three years or more when its is used on a regular basis |
| nondurable good | is an item that lasts for less than three years when it is used on a regular basis |
| service | work that is preformed for someone |
| consumers | people who use goods and services to satisfy and needs |
| consumption | the process of using up goods and services in order to satisfy wants and needs |
| conspicuous conumption | the use ofa good or service to impress others-is fairly common |
| value | reders to something that has a worth can be expressed in dolars and cents |
| paradox of value | apparent contradiction between the high value of nonessentials and low value of essentials |
| utility | the capacity to be useful to someone |
| wealth | the sum of those econmic products that are tangible, scarce, useful, and tranferable from one peson to another |
| production | the process of creating goods and services, can take place |
| productivity | efficient use of productive resources |
| specialization | means that productive inputs do whatever takes thay are able to do best |
| division of labor | takes place when workers perform fewer tasks more frequently |
| human capital | the sum of skills, abililties, health, and motivation |
| econmic interdependence | economic activties in one part of the country or world affect what happens elsewhere |
Combine with other sets
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