econ unit 1 vocab from the Prentice Hall Economics Principles in Action book
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| 601849127 | Need | something like air, food, or shelter that is necessary for survival | |
| 601849128 | Want | an item that we desire but that is not essential to survival | |
| 601849129 | Economics | the study of how people seek to satisfy their needs and wants by making choices | |
| 601849130 | Goods | physical objects such as clothes or shoes | |
| 601849131 | Services | actions or activitse that one person performs for another | |
| 601849132 | Scarcity | limited quantites of resources to meet unlimited wants | |
| 601849133 | Shortage | a situation in which a good or service is unavailable | |
| 601849134 | Factors of Production | land, labor and capital; the three groups of resource that are used to make all goods and services | |
| 601849135 | land | natural resource that are used to make goods and services | |
| 601849136 | labor | the effort that people devote to a task for which they are paid | |
| 601849137 | capital | any human-made resource that is used to create other goods and services | |
| 601849138 | physical capital | all human-made goods that are used to produce other goods and services; tool and buildings | |
| 601849139 | Human Capital | the skills and knowledge gained by a worker through education and experience | |
| 601849140 | Entrepreneur | ambitious leader who combines land, labor, and capital to create and market new goods and services | |
| 601849141 | Trade-off | an alternative that we sacrifice when we make a decision | |
| 601849142 | guns or butter | a phrase that refers to the trade-offs that nations face when choosing whether to produce more or less military or consumer goods | |
| 601849143 | Opportunity Cost | the most desirable alternative given up as the result of a decision | |
| 601849144 | Thinking at the margin | deciding whether to do or use one additional unit of some resource | |
| 601849145 | P.P Curve | a graph that shows alternative ways to use an economy's resources | |
| 601849146 | P.P Frontier | the line on a production possibilites graph that shows the max. possible output | |
| 601849147 | Efficiency | using resources in such a way as to maximize the production of goods and services | |
| 601849148 | underutilization | using fewer resources than an economy is capable | |
| 601849149 | Cost | to an economist, the alternative that is given up because of a decision | |
| 601849150 | Law of increasing costs | law that states that as we shift factors of production from making one good or serviec to another, the cost of producing the second item increases | |
| 601849151 | Economic System | the method used by a society to produce and distribute goods and services | |
| 601849152 | Factor payments | the income people receive for supplying factors of production, such as land,labor, or capital | |
| 601849153 | Patriotism | the love of one's country; the passion that inspires a person to serve his or her country | |
| 601849154 | Standard of living | level of economic prosperity | |
| 601849155 | traditional economy | economic system that relies on habit, custom,or ritual to decide questions of production and consumption of goods and services | |
| 601849156 | market economy | economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets | |
| 601849157 | centrally planned economy | economic system in which the central gov. makes all decisions on the production and consumption of goods and services | |
| 601849158 | command economy | econ. system in which a central autority is in command of the economy | |
| 601849159 | mixed economy | market-based econ. system with limited government involvement | |
| 601849160 | market | an arrangement that allows buyers and sellers to exchange | |
| 601849161 | specialization | the concentration of the productive efforts of individuals and firms on a limited number of activites | |
| 601849162 | household | a person or group of people living in the same residence | |
| 601849163 | firm | an organization that uses resources to produce a product, which it then sells | |
| 601849164 | factor market | market in which firms purchase the facots of production from households | |
| 601849165 | profit | the financial gain made in a transaction | |
| 601849166 | product market | the market in which households purchase the goods and services that firms produce | |
| 601849167 | self-interest | one's own personal gain | |
| 601849168 | incentive | an expectation that encourages people to behave in a certain way | |
| 601849169 | competition | the struglle among producers for the dollars of consumers | |
| 601849170 | invisible hand | term economists use to describe the self-regulating nature of the marketplace | |
| 601849171 | consumer sovereignty | the power of consumers to decide what gets produced | |
| 601849172 | socialism | based on belief that democratic means should be used to evely distribute wealth throughout a society | |
| 601849173 | communism | centrally planned econ. with all economic and political power resting in the hands of the central government | |
| 601849174 | authoritarian | requiring strict obeidience to an authority, such as a dictator | |
| 601849175 | collective | large farm leased from the state to groups of peasant farmers | |
| 601849176 | heavy industry | industry that requires a large capital investment and that produces items used in other industries | |
| 601849177 | laissez faire | the doctrine that states that government generally should not intervene in the marketplace | |
| 601849178 | private property | property owned by individuals or companies, not by the government or the people as a whole | |
| 601849179 | free enterprise | econ. system characterized by private or corporate ownership of capital goods | |
| 601849180 | continuum | a range with no clear divisions | |
| 601849181 | transition | period of change in which an economy moves away from a centrally planned economy toward a market-based system | |
| 601849182 | privatize | to sell state-run firms to individuals | |
| 601849183 | safety net | government progarams that protect people expericening unfavorable economic conditions | |
| 601849184 | Economic Goals | Econ. Efficiency, Econ. Freedom, Econ. Security and Predictability Econ. Equity Econ. Growth and Innovation | |
| 601849185 | profit motive | the force that encourages people and organizations to improve their material well being.This makes products better, includes new innovative technology.) | |
| 601849186 | open opportunity | the concept that everyone can compete in the marketplace.There are no regulations on business; there can be 3 different gas stations on a corner.) | |
| 601849187 | legal equality | the concept of giving everyone the same legal rights.no unfair advantages, anyone can start a business.) | |
| 601849188 | private property rights | the concept that people have the right and privilege to control their possessions.You can start a business from your home.) | |
| 601849189 | free contract | the concept that people may decide what agreements they want to enter into.you can start a business alone or with a partner.) | |
| 601849190 | voluntary exchange | the concept that people may decide what and when they want to buy and sell.Businesses don't have quotas.) | |
| 601849191 | competition | the rivalry among sellers to attract customers while lowering cost.the key to a free enterprise system. prevents monopolies.) | |
| 601849192 | interest group | a private organization that tries to persuade public officials to act or vote according to a certain interest.Tobacco companies, advocates for agriculture.) | |
| 601849193 | public disclosure laws | laws requiring companies to provide full information about their products.energy and fuel efficiency labels.) | |
| 601849194 | public interest | the concerns of a public as a whole.cooking and manufacturing standards.) | |
| 601849195 | macroeconomics | the study of the behavior and decision making of entire economies.looks at nations as a whole.) | |
| 601849196 | microeconomics | the study of the economic behavior decision of small units likes families. | |
| 601849197 | GDP | the total value of all final goods and services produced in an economy.increases by 1 or 2% each year. helps predict business cycles.) | |
| 601849198 | business cycle | a period of macroeconomic expansions followed by a period of contraction.major fluctuations, can last many years or less than a year.) | |
| 601849199 | work ethic | a commitment to the value of work and purposeful activity.higher in a free market economy. people have higher incentive to work.) | |
| 601849200 | technology | the process used to produce a good or service.I hope you don't need an example.) | |
| 601849201 | public good | something used and paid for by everyone.roads, police, fire department.) | |
| 601849202 | public sector | government transactions.people that work for the government, teachers.) | |
| 601849203 | private sector | privately owned business and individualsany private business worker.) | |
| 601849204 | free rider | someone who didn't be for something, but would get the benefits of it anyway.People who don't pay taxes.) | |
| 601849205 | market failure | a situation in which the market doesn't distribute resources efficiently.like free riders, housing market.) | |
| 601849206 | externality | an economic side effect of a good/service that generates benefits or cost to someone other than the person deciding how much to produce or consume.can be positive or negative, someone fixing up an old beat up house that gives benefits to the neighbors, like higher property values and a better view.) | |
| 601849207 | poverty threshold | an income level below that which is needed to support families or households.determined by the government, and adjusted periodically. In St. Louis, 42% of people live below the poverty threshold.) | |
| 601849208 | welfare | government aid to the poor.began under FDR, such as medicaid. soared from 70s-90s, decreases productivity.) | |
| 601849209 | cash transfer | direct payments of money to eligible poor people, seen as making people dependent upon the government.Temporary Assistance for Needy Families, Social Security, Workers Compensation.) | |
| 601849210 | in-kind benefits | goods and services produced for free or at greatly reduced prices.food stamps, subsidized housing, legal aid.) |
