Upgrade to remove ads
Glencoe Economics Chapter 1
Terms in this set (50)
Basic requirement for survival: includes food, clothing, and shelter.
A way of expressing a need- the term is much broader than need.
Fundamental Problem facing all societies that results from combination of scarce resources and people's unlimited wants.
Study of how people try to satisfy seemingly unlimited and competing wants through the careful use of scarce resources.
Factors of production
Resources required to produce the things we would like to have. Capital, labor, land, and entrepreneurship.
Natural resources necessary to grow crops.
tools, equipment, machinery, and factories used in the production of goods and services.
The money used to buy the tools and equipment used in production
people with all their efforts, abilities, and skills
a risk-taker in search of profits who does something new with existing resources.
The process of creating goods and services
Gross Domestic Product
Dollar value of all final goods, services, and structures produced within a country's boarders in a 12-month period.
Goods and services that are useful, relatively scarce, and transferable to others.
An item that is economically useful or satisfies an economic want.
Intended for final use by individuals.
Manufactured goods that are used to produce other goods and services
Work that is performed for someone.
A worth that can be expressed in dollars and cents
Paradox of value
Situation where some necessities, such as water, have little monetary value, while non-necessities, such as diamonds, have a much higher value.
Capacity to be useful and provide satisfaction.
Location or other mechanism that allows buyers and sellers to exchange a certain economic product.
Markets where productive resources are bought and sold. This is where entrepreneurs hire labor, acquire land, and borrow money.
When a nations total output of goods and services increase over time
Markets where producers sell their goods and services to consumers.
Measure of the amount of outputs in a specific period of time
Division of Labor
When work is arranged so that individual workers do fewer tasks than before.
Takes place when factors of production perform tasks that they can do relatively more efficiently than others.
The sum of the skills, abilities, health, and motivation of people.
Reliance on others to provide the goods and services that we consume.
Alternative choices whenever one makes an economic decision
The cost of the next best alternative use of money, time, or resources when one choice is made rather than another.
Production possibilities frontier
A diagram representing various combinations of goods and services an economy can produce when all resources are fully employed.
A way of thinking about a problem that compares the cost of an action to the benefits received
Free enterprise economy
Consumers and privately owned businesses rather than the government make the majority of economic decisions.
Standard of living
Quality of life based on the possession of the necessities and luxuries that make life easier.
Organized way of providing for the wants and needs of a society
Allocation of scarce resources and nearly all other economic activity stems from ritual, habit, or custom.
Central authority makes most of the economic decisions
People and firms act in their own best interests to answer the economic questions
Federal program of disability and retirement benefits
Rise in the general level of prices
Income that does not increase even though prices go up
Private citizens own the factors of production
Another name for capitalism
The act of buyers and sellers freely and willingly engaging in market transactions
Private property rights
Privilege that entitles people to own and control their possessions as they wish.
The driving force that encourages people and organizations to improve their wealth.
The struggle among sellers to attract consumers while lowering costs.
Describes the role of the consumer as the ruler of the market.
People carry on their economic affairs freely, but are subject to some government intervention and regulation
Sets found in the same folder
Economics Chapter 2 (Glencoe)
Economics Chapter 4 Demand (Glencoe)
Glencoe Economics Chapter 5 Vocab
Avancemos 2 Unit 8.1
Sets with similar terms
Unit 1 - Fundamental Economic Concepts (Vocabulary)
Chapter 1: Fundamental Economic Concepts
econ vocab words
Econ. Ch.1 Vocab.
Other sets by this creator
Barron's AP Psychology History
Barrons AP Psychology 7th Edition - FULL…
AP PSYCHOLOGY: 5 Steps to a 5 - Chapter 6 - Resear…
AP PSYCHOLOGY: 5 Steps to a 5 - Chapter 5 - Histor…
Other Quizlet sets
exam #4 True/False
Chemistry quarter exam stuff
exam 4 management principles in kinesiology