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| 119531246 | Economics | study of how society allocates (distributes) scarce (limited) resources | |
| 119531247 | Factors of Production | inputs of resources that go into the production function to produce goods and services (land, labor, & capital) | |
| 119531248 | Inputs | factors of production (resources) used to make goods and services | |
| 119531249 | Capital | man made goods used in the production of other goods (the tools needed to do the job) | |
| 119531250 | Microeconomics | the study of choices made by individual units (households, firms, or an industry) and with individual markets, specific goods and services, and product and resource prices (the "trees" instead of the forest) | |
| 119531251 | Macroeconomics | the study of the economy as a whole (the "forest" instead of the trees) | |
| 119531252 | Positive economics | the analysis of facts or data to establish scientific generalizations about economic behavior | |
| 119531253 | Normative economics | involves value judgements about what the economy should be like; policy economics | |
| 119531254 | Ceteris paribus | assumption that all factors other than those being considered are held constant (the control in an experiment) | |
| 119531255 | Fallacy of composition | false notion that what is true for the individual (or part) is necessarily true for the group (or whole) | |
| 119531256 | Scarcity | limited resources to meet unlimited wants and needs | |
| 119531257 | Opportunity cost | the most desirable alternative given up when making a decision | |
| 119531259 | Production Possibilities Curve | shows the alternative ways an economy can use its resources | |
| 119531260 | Production Possilibilities Frontier | edge of production possibilities for an economy; efficient use of resources | |
| 119531261 | Efficient | using everything availalbe with nothing left over | |
| 119531262 | Inefficient | Left over, unused, resources (ex: unemployment, idle factory, idle equipment, idle oil wells, etc...) | |
| 119531263 | Underutilization | inefficient | |
| 119531264 | Goods | tangible products available for individuals, firms or governments to buy, sell, and trade (ex: desks, books, computers, etc...) | |
| 119531265 | Services | an intangible act or use for which a consumer, firm or government is willing to pay (ex: hair cut, banking services, education, etc...) | |
| 119531266 | Constant opportunity cost | an opportunity cost that remails the same for each additional unit as a consumer (or society) shifts puraches (production) from one product to another along a straight-line (ex: for every additional bicycle made, it will cost us two computers) | |
| 119531267 | Law of increasing opportunity cost | principle that as the production of a good increases, the opportunity cost of producing an addtional unit rises (ex: computers & pizzas - since the resources needed to produce these two goods are very different making more of either will will divert more & more resources to that option & away from the other because resources aren't readily interchangeable) | |
| 119531268 | Absolute advantage | ability to produce more of a good than all other producers | |
| 119531269 | Comparative advantage | ability to produce a good at a lower opportunity cost than all other producers | |
| 119531270 | Specialization | production of goods, or performance of tasks, based upon comparative advantage (ex: Henry Ford's assembly line) | |
| 119531271 | Terms of trade | rate at which units of one product can be exchanged for units of another product | |
| 119531295 | Tarrifs | tax imposed by a nation on imports to its country | |
| 119531296 | Quotas | maximum amount of a good that can be imported | |
| 119531297 | Subsidies | government transfer (payment), either to consumers or producers, on the consumption or production of a good | |
| 119531298 | Trade barriers | any restrictions a nation imposes on other nations importing goods to that country | |
| 119531299 | Free-trade agreements/zones | a group of nations that lower or abolish trade barriers amount members (ex: European Union EU, North American Free Trade Agreement NAFTA, Oil Producing and Exporting Countries OPEC, et...) | |
| 119531300 | Land | any natural resource | |
| 119531301 | Labor | effort for pay | |
| 119531302 | Human capital | education, training or skills that make you a more in demand employee | |
| 119531303 | Trade-off | giving up some of one thing to get more of another; compromise | |
| 119531304 | Shortage | temporary unavailabilty of a good or service | |
| 119531305 | Entrepreneurs | people that put together the factors of production (land, labor, capital) to sell goods and services to individuals, government, or firms | |
| 119531306 | Rational choice | when faced with options, it is the one you choose | |
| 119531307 | Growth | an increase in real GDP (GDPr) per capita (per person); usually brought on by new technology | |
| 198086150 | Demand | desire & ability to buy a good/service | |
| 198086151 | Law of demand | lower the price, the more consumers buy | |
| 198086152 | Quantity demanded | amount of a good/service consumers are willing to purchase at a certain price | |
| 198086153 | Complements | Goods used together | |
| 198086154 | Substitutes | Goods used in place of another | |
| 198086155 | Normal goods | goods you buy more of as income increases | |
| 198086156 | Inferior goods | goods you buy more of as income decreases | |
| 198086157 | Supply | amount of a good/service available | |
| 198086158 | Law of supply | producers supply more of a good/service as price increases | |
| 198086159 | Quantity supplied | amount of good/service producers are willing to supply at each price level | |
| 198086160 | Market equilibrium | point at which quantity supplied & quantity demanded are equal (requires a price & quantity) | |
| 198086161 | Equilibrium price | price at which quantity supplied & quantity demanded are equal | |
| 198086162 | Equilibrium quantity | amount of a good/service that buyers are willing to consume and producers are willing to sell so there's not a shortage/surplus | |
| 198086163 | North American Free Trade Agreement (NAFTA) | agreement between Canada, the United States, and Mexico to eliminate trade barriers between the three North American countries to promote overall economic growth in the region |
