Flashcards in 1st Semester Final - Terms Deck (33):
Deciding whether to do or use one additional unit or resource.
Thinking at the Margin
A phrase that refers to what nations face.
Guns or Butter
Ambitious leader who creates new goods and services.
All human made goods that are used to create other goods.
Effort that people devote to a task.
Physical objects such as goods or phones.
An item that we desire but it's not essential to live.
The common sense science of how and why people, business and governments make the choices they do.
Everything that is finite or limited to quantity
Uses wisely and well of what God has given
To determine the nature of the product.
Also known as schedule, and a popular method of explaining simple relationships between pairs.
Contains horizontal and vertical axis that can used for many purposes.
This provides a complete visual explanation of how a complete national economic system functions.
Circular Flow Model
Land, labor, capital, and entrepreneurship
Factors of Production
The payment made on borrowed money.
When a government spending exceeds when it receives in taxes
Difference between revenues receive and costs that go in production.
All payments for labor
The activity of reacting new and useful services
Household's spending on goods and services
Principle of Diminishing Marginal Utility
The willingness of consumers to purchase a product and the actual act of purchasing it.
Goods that experience an increase in demand because of an increase of consumer's incomes.
Goods that households may use in place of others.
Goods that are usually purchased that are used together.
Items that see in decline in sales as consumers incomes increases.
When a demand curve shifts to the left or the right.
Change in Demand
When the government dictates that the prices may not rise any higher.
A barrier that prevents prices falling below the market price.
The price at which consumers are willing to take from the market that exact quantity of a product that suppliers that will put into the market.
Market Equilibrium Price
The willingness of business to produce more of their product at any given price.
Increase in Supply
Supply fluctuation up or down
Changes in Supply