Chapter 1 vocabulary
Terms in this set (36)
the condition that results from society not having enough resources to produce all the things people would like to have
the study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources.
a basic requirement for survival and includes food, clothing, and shelter.
a way of expressing need
factors of production
resources required to produce the things we would like to have. They are land, capital, labor, and entrepreneurs .
"gifts of nature," or natural resources not created by humans.
the tools, equipment, machinery, and factories used in the productions 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 (GDP)
the dollar value of all final goods and services, and structures produced within a country's borders in a 12-month period.
goods and services that are useful, relatively scarce, and transferable to others
An item that is economiclly useful or satisfies an economic want.
manufactured goods 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
the situation where some necessities, such as water, have little monetary value, whereas some non-necessities, such as diamonds, have a much higher value.
the capacity to be useful and provide satisfaction
the accumulation of those products that are tangible, scarce, useful, and transferable from one person to another.
a location or other mechanism that allows buyers and sellers to exchange a certain economic product
the markets where productive resources are bought and sold
markets where producers sell their goods and services to customers
occurs when a nations total output of goods and services increases over time.
a measure of the amount of output produced by a given amount of inputs in a specific period of time.
division of labor
takes place 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.
this means that we rely on others, and other rely on us, to produce the goods and services that we consume.
intended for final use by individual
Alternative choices When making economic decisions.
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 productive resources are fully employed
A way of thinking about a problem That compares the costs of an action to the benefits received
One in which consumers and privately owned businesses, rather than the government, make the majority of the what, how, and whom decisions.
Standard Of living
The quality of life based on the possession of yhr necessities and luxuries that make life easier