econ Flashcards
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there is no such thing as a free lunch
TINSTAFL
what is the fundamental economic problem?
scarcity
What are the 3 basic questions on how limited resources be used?
WHAT to produce?
HOW to produce it?
WHO to produce it to?
what are the factors of production?
land, capital, labor, entrepreneurs, [production
capital
the tools, equipment, machinary, and focatories used in the production of goods and services.
labor
people with all their efforts, abilities, and skills
the scope of economics the 4 main key elements to its study?
description (GDP), analysis, explanation, prediction
goods, services and consumers
.
consumer goods
is intended by final use by individuals
capital goods
when manufactured goods are used to produce other goods and services
value, utility, and wealth
.
paradox of value
the situation were some necessities, such as water, have little monetary value, whereas some non-necessities, such as diamonds, have a much higher value
utility
the capacity to be useful and provide satisfaction
wealth
.
factor markets
the markets were productive resources are bought and sold