Economics Chapter one

  1. economics
    the study of how individuals and societies make choices about ways to use scarce resources to fulfill their wants
  2. scarcity
    condition of not being able to have all of the goods and services one wants, because wants exceed what can be made from all available resources at any given time
  3. factors of production
    resources of land, labor, capital, and entrepreneurship used to produce goods and services
  4. land
    natural resources and surface land and water
  5. labor
    human effort directed toward producing goods and services
  6. goods
    tangible objects that can satisfy people's wants or needs
  7. services
    actions that can satisfy people's wants or needs
  8. capital
    previously manufactured goods used to make other goods and services
  9. productivity
    the amount of out-put (goods and services) that result from a given level of inputs (land, labor, capital, entrepreneurship)
  10. entrepreneurship
    ability of risk-taking individuals to develop new products and start new businesses in order to make profits
  11. technology
    advance in knowledge leading to new and improved goods, and services and better ways of producing them
  12. trade-off
    sacrificing one good or service to purchase or produce another
  13. opportunity cost
    value of the next best alternative given up for the alternative that was chosen
  14. production possibilities curve
    graph showing the maximum combinations of goods and services that can be produced from a fixed amount of resources in a given period of time
  15. microeconomics
    the branch of economic theory that deals with behavior and decision making by small units such as individuals and firms
  16. macroeconomics
    the branch of economic theory dealing with the economy as a whole and decision making by large units such as governments
  17. economy
    the production and distribution of goods and services in a society
  18. economic model
    a theory of simplified representation that helps plan and predict economic behavior in the real world
  19. hypothesis
    an assumption involving two or more variables that must be tested for validity
Card Set
Economics Chapter one
Terms for my high school economics class, chapter one