basic economic concepts
Terms in this set (20)
goods (as food or clothing) intended for direct use or consumption
Goods that last a relatively long time, such as cars and household appliances
goods that last a short period of time, such as food, light bulbs, and sneakers
intangible things of value (haircuts, maid service, laundry, education, etc.)
A customer's subjective assessment of benefits relative to costs in determining the worth of a product
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.
Ability or capacity of a good or service to be useful and give satisfaction to someone.
A measure of net worth that includes income, property, and other assets.
A group of buyers and sellers of a particular good or service
A market for the factors of production, such as labor, capital, natural resources, and entrepreneurial ability.
a market where producers offer goods and services for sale
An increase in the total output of an economy.
A measure of the goods and services produced with a given amount of resources in a specific period of time
The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.
division of labor
Division of work into a number of separate tasks to be performed by different workers
Each person performs the task that he or she is more efficient at doing than others
a reliance on others, as they rely on you, to provide goods and services to be consumed
study of how people and societies use limited resources to satisfy unlimited wants; the management of scarcity and choice
is often viewed as a luxury; an expense that can be postponed until a future time.
a person who organizes, manages, and takes on the risks of a business