Chapter 1 Flashcards Preview

ECONOMICS Mid-Term '15 > Chapter 1 > Flashcards

Flashcards in Chapter 1 Deck (13):
0

Something like air, food, or shelter

Need

1

An item that we desire but that is not essential to survival

Want

2

The study of how people seek to satisfy their needs and wants by making choices

Economics

3

Physical objects such as clothes or shoes

Goods

4

Actions or activities one person performs for another

Services

5

Limited quantities of resources to meet unlimited wants

Scarcity

6

A situation in which a good or service is unavailable

Shortage

7

Land, labor, or capital; the three groups of resources that are used to make all good and services

Factors of Production

8

The effort that people devote to a task for which they are paid

Labor

9

Any human-made resource that is sued to create other goods or services

Capital

10

Ambitious leader who combines land, labor, and capital to create and market new goods or services

Entrepreneur

11

Using fewer resources than an economy is capable of using

Underutilization

12

As we shift factors of production from making one good or service to another, the cost of producing the second item increases

Law of Increasing Costs