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using a product or service.
consumption
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the process that combines economic resources so the result is a good or service that is available for sale.
production
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the process of getting a product or service to consumers.
distribution
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social science that studies how people, acting individually and in groups, decide to use scarce resources to satisfy their wants.
economics
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natural resources such as soil, minerals, timber, and fresh water.
land
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human resources used to create goods and services.
labor
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buildings, tools, and machines people create and used to produce final goods and services.
capital
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land, labor, capital, and entrepreneurship.
factors of production
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the imagination, innovative thinking, and management skills needed to start and operate a business.
entrepreneurship
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an inequality exists between wants and the resources available to satisfy them. =WANTS>AVAILABLERESOURCES
scarcity
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the highest valued alternative given up as a result of making a choice.
opportunity costs
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-
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are possible rewards for making some kind of choice or behaving in a certain way.
incentives
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a negative or withdrawn reward. ex fines and punishment.
disincentives
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exchanging something for something else.
trade
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extra or additional costs or benefits of a decision.
marginal
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a positive difference between total sales and total costs, meaning total sales must be greater than total costs.
profit
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relies on voluntary trade as primary means of organizing and coordinating production.
market economy
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an arrangement that allows buyers and sellers to make exchanges.
market
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the study of ecomomy as a whole.
macroeconomics
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the study of individual consumers and business.
microeconomics
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