Ap Flashcards

2829304265	Trade offs	Alternative choices	0
2829304266	Opportunity costs	The cost of the next best alternative use of money, time, or resources when one choice is made rather than the other	1
2829304267	Production possibilities frontier	A diagram representing various combinations of goods and or services an economy can produce when all productive resources are fully employed	2
2829304268	Cost benefit analysis	A way of thinking about a problem that compares the costs of an action to the benefits received	3
2829304269	Free enterprise economy	System in which consumers and privately owned businesses, rather than the government, make the majority of the WHAT, HOW, and FOR WHOM decisions	4
2829304270	Standard of living	The quality of life based on possessions that make life easier	5
2829304271	Scarcity	The condition that results from society not having enough resources to produce all the things people would like to have	6
2829304272	Economics	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	7
2829304273	Need	A basic requirement for survival that includes food, clothing, and shelter	8
2829304274	Factors of production	Resources required to produce things people would like to have; they include land, capital, labor, and entrepreneurs	9
2829304275	Land	Natural resources not created by humans	10
2829304276	Capital	The tools, equipment, machinery, and factories used in the production of goods and services	11
2829304277	Financial capital	The money used to but the tools and equipment used in production	12
2829304278	Labor	People with all their efforts, abilities, and skills	13
2829304279	Entrepreneur	A risk taker in search of profits who does something new with existing resources	14
2829304280	Production	The process of creating goods and services	15
2829304281	Gross domestic product	The dollar value of all final goods, services, and structures produced within a country's borders in a 12 month period	16
2829304282	Economic product	A good or service that is useful, relatively scarce, and transferable to others	17
2829304283	Good	An item that is economically useful or satisfies an economic what	18
2829304284	Consumer good	An item intended for final use by individuals	19
2829304285	Capital good	A manufactured item used to produce other goods and services	20
2829304286	Service	Work that is performed for someone	21
2829304287	Value	A with that can be expressed in dollars and cents	22
2829304288	Paradox of value	The situation in which some non-necessities have a much higher value than some necessities	23
2829304289	Utility	The capacity to be useful and provide satisfaction	24
2829304290	Wealth	The accumulation of those economic products that are tangible, scarce, useful, and transferable from one person to another	25
2829304291	Market	A location or other mechanism that allows buyers and sellers to exchange a certain economic product	26
2829304292	Factor market	A market where productive resources are bought and sold	27
2829304293	Product market	A market where producers sell their goods and services to consumers	28
2829304294	Economic growth	The increase in a nations total output of goods and services over time	29
2829304295	Productivity	A measure of the amount of output produced by a given amount of inputs in a specific period of time	30
2829304296	Division of labor	Work arranged so that individual workers do fewer tasks than before	31
2829304297	Specialization	Situation in which a factor of production performs tasks that it can do relatively more efficiently than others	32
2829304298	Human capital	The sum of skills, abilities, health, and motivation of people	33
2829304299	Economic interdependence	Reliance on one another to provide the goods and services that people consume	34