Introduction to Economics 2014-2015
Terms : Hide Images
| 465468495 | Need | Something like air, food, or shelter that is necessary for survival | 0 | |
| 465468496 | Want | An item that we desire but that is not essential to survival | 1 | |
| 465471535 | Economics | The study of how people seek to satisfy their needs and wants by making choices | 2 | |
| 465471536 | Goods | Physical objects such as clothes or shoes | 3 | |
| 465477890 | Services | Actions or activities that one person performs for another | 4 | |
| 465477891 | Scarcity | Limited quantities of resources to meet unlimited wants | 5 | |
| 465477892 | Shortage | A situation in which a good or service is unavailable | 6 | |
| 465477893 | Factors of production | Land, labor, and capital; the three groups of resources that are used to make all goods and services | 7 | |
| 465477894 | Land | Natural resources that are used to make goods and services | 8 | |
| 465501033 | Labor | The effort that people devote to a task for which they are paid | 9 | |
| 465501034 | Capital | Any human-made resource (money, tools, machines, vehicles) that is used to create other goods and services | 10 | |
| 465501035 | Physical capital | All human-made goods that are used to produce other goods and services; tools, machines, and building | 11 | |
| 465501036 | Human capital | The skills and knowledge gained by workers through education and experience | 12 | |
| 465501037 | Entrepreneur | Ambitious individual who combines land, labor, and capital to create and market new goods and services | 13 | |
| 465501038 | Trade-off | An alternative choice that we sacrifice when we make a decision | 14 | |
| 465501039 | Guns or butter | A phrase that refers to the trade-offs that nations face when choosing whether to produce more or less military goods or consumer goods | 15 | |
| 465501040 | Opportunity cost | The most desirable alternative given up as the result of a decision | 16 | |
| 465510688 | Thinking at the margin | Deciding whether to act, create, or use one additional unit of some resource | 17 | |
| 465510689 | Production possibilities curve | A graph that shows the combinations of goods and services that can be produced and the combinations that cannot | 18 | |
| 465510690 | Production possibilities frontier | The line on a production possibilities graph that shows the maximum possible output | 19 | |
| 465510691 | Efficiency | Using materials & resources in such a way as to maximize the production of goods and services | 20 | |
| 465510692 | Underutilization | Using fewer resources than an economy is capable of using | 21 | |
| 465517679 | Cost | To an economist, the alternative that is given up because of a decision you make | 22 | |
| 465517680 | Law of increasing costs | Economic law that states that as we shift factors of production from making one good or service to another, the cost of producing the second item increases | 23 | |
| 1758836645 | Incentive | A reward that encourages an action or a penalty that discourages an action | 24 | |
| 1758840547 | Microeconomics | The study of the choices that individuals and businesses make, the way these choices interact in markets, and the influence of governments | 25 | |
| 1758840548 | Macroeconomics | The study of the performance of the national economy and the global economy | 26 | |
| 1835347185 | Margin | When a choice is changed by a small amount or by a little at a time, the choice is made at the margin. | 27 | |
| 1835409038 | Marginal Benefit | The benefit that arises from an increase in an activity. | 28 | |
| 1835409039 | Marginal Cost | The opportunity cost of producing one unit of a good or service. It is the best alternative forgone. It is calculated as the increase in total cost divided by the increase in output. | 29 | |
| 1835409040 | Economic Model | A description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand. | 30 | |
| 1835409041 | Economic Theory | A generalization that summarizes what we think we understand about the economic choices that people make and the performance of industries and entire economies. | 31 | |
| 1835409042 | Ceteris paribus | A Latin term that means "other things being equal" or if all other relevant things remain the same." | 32 |
