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Economics

Terms in this set (93)

Utility
The satisfaction one receives from a good.
Bad
Anything from which individuals receive disutility or dissatisfaction.
Good
Anything from which individuals receive utility or satisfaction.
Disutility
The dissatisfaction one receives from a bad.
Land
All naturals resources, such as minerals, forests, water, and unimproved land.
Labor
The physical and mental talents people contribute to the production process.
Capital
Produced goods that can be used as inputs for further production, such as factories, machinery, tools, computers, and buildings.
Entrepreneurship
The particular talent that some people have for: organizing the resources of land, labor, and capital to product goods. Seeking new business opportunities. Developing new ways of doing things.
Scarcity
The condition in which our wants are greater than the limited resources available to satisfy those wants.
Opportunity Costs
The most highly valued opportunity or alternative forfeited when a choice is made.
Economics
The science of how individuals and societies deal with the fact that wants are greater than the limited resources available to satisfy those wants.
Rationing Device
A means for deciding who gets what portion of the available resources and goods.
Marginal Benefits
Additional benefits received when one more unit of a product is produced.
Marginal Costs
Additional costs of producing an additional unit of a good or service.
Decisions at the Margin
Decision making characterized by weighing the additional (marginal) benefits of a change against the additional (marginal) costs of a change with respect to current conditions.
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