IB Economics: Microeconomics

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Scarcity

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Terms in this set (96)

the condition that results from limited resources combined with unlimited wants

Opportunity Cost

Cost of the next best alternative use of money, time, or resources when one choice is made rather than another

Factors of Production

resources of land, labor, capital, and entrepreneurship used to produce goods and services

the physical location where production occurs. Includes bodies of water as well as resources extracted from the earth.

the work done by humans that is used in the production of goods and services.

previously manufactured goods used to make other goods and services

Entrepreneurship

the process of starting, organizing, managing, and assuming the responsibility for a business

a group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade

The quantity of a good or service that consumers are willing and able to purchase at a given price in a given period of time.

Consumer Demand

The amount of a good or service a consumer is willing and able to purchase at a range of prices.