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Unit 1: What is Economics?
Terms in this set (34)
Production Possibilities Curve
Goods, services, and resources are only available in limited amounts.
the branch of economics that studies the economy of consumers or households or individual firms
the branch of economics that studies the overall working of a national or global economy
4 Factors of Production
Land, Labor, Capital, Entrepreneurship
Money, equipment, or anything of value that can be used or traded in the production process. NOT Natural Resources!
Having a visionary or risk-taking attitude. Motivation to use available land, labor or capital to produce something
The value of the thing you DO NOT get when when you choose one thing instead of another.
The sacrifice made when making an economic decision
An added benefit of making a particular economic decision
The actual benefit/satisfaction of a particular economic decision
A person who buys goods or services for their own use
A person who makes goods or provides services
Goods, services or resources that are important but not essential for survival.
Goods, services or resources that are absolutely necessary for survival.
The study of how limited resources are used and distributed in a world of unlimited wants and needs
Point below the PPC where production is attainable, but does not make efficient use of all available resources
Point outside or above the PPC where resources are too scarce to produce both items
Law of Increasing Opportunity Costs
Increases in production of one good or service requires less and less production of other goods or services.
Numerical data or information
Interpretations of economic situations that depend on assumptions and simplified scenarios
Observing, analyzing and describing economic situations as they are
Describing or explaining what economic behavior should be. Making value judgements
Goods that are necessary for the production of other goods & services.
Goods that are sold directly to consumers
"There Ain't No Such Thing As A Free Lunch"
3 Basic Economic Questions
- What will be produced?
- How will it be produced?
- For whom will it be produced?
Goods, such as clean air and clean water, that everyone must share
Benefits and services over which the owner has full control of their use.
Author of "The Wealth of Nations"; advocated the idea of laissez faire; or government not involving themselves in the economy.
Analyzing changes from one level to the next.
The additional cost of consuming an additional unit
The additional satisfaction gained from consuming one more unit
Making decisions benefit yourself the most. Has the unintended effect of making everyone else better off also.
THIS SET IS OFTEN IN FOLDERS WITH...
Unit 2: Economic Systems
Unit 3.1: Demand
Unit 3.2: Supply
Unit 3.3 - Prices
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