Chapter 1-Section 2 Flashcards Preview

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Flashcards in Chapter 1-Section 2 Deck (30):
0

Goods and services that are useful, relatively scarce, and transferable to others

Economic products

1

An item that is economically useful or satisfies an economic want

Good

2

Intended for final use by individuals

Consumer good

3

Manufactured goods are used to produce other goods and services

Capital goods

4

Any good that lasts three or more years when used on a regular basis

Durable good

5

An item that lasts for less than three years when used on a regular basis

Non durable goods

6

Work that is performed for someone

Service

7

What is the difference between a good and service?

A service is intangible

8

A person who uses goods and services to satisfy wants and needs

Consumer

9

Refers to a worth that can be expressed in dollars an cents

Value

10

The situation where some necessities have little monetary value, whereas some non-necessities have a much higher value

Paradox of value

11

Capacity to be useful and provide satisfaction

Utility

12

For something to have value it must be scarce and have utility. True it false?

True

13

Accumulation of those products that are tangible, scarce, useful, and transferable from one person to another

Wealth

14

Goods are counted as wealth, but services aren't. Why?

Services are intangible

15

A location or other mechanism that allows buyers and sellers to exchange a certain economic product

Market

16

Markets where productive resources are bought and sold

Factor markets

17

Entrepreneurs can hire labor, acquire land, and borrow money in what market?

A factor market

18

Markets where producers sell their goods and services to consumers

Product markets

19

After individuals receive their income from the resources they sell where do they spend it?

Product market

20

Occurs when a nation's total output of goods and services increases over time

Economic growth

21

A measure of the amount of output produced by a given amount of inputs in a specific period of time

Productivity

22

Productivity is often discussed in terms of what?

Labor

23

Takes place when work is arranged so that individual workers do fewer tasks than before

Division of labor

24

Takes place when factors of production perform tasks that they can do relatively more efficiently than others

Specialization

25

The sum of the skills, abilities, health, and motivation of people

Human capital

26

We rely on others, and others rely on us, to provide the goods and services that we consume

Economic interdependence

27

What is a key to circular flow?

Market

28

How dothe division of labor and specialization affect productivity?

Increases productivity dramatically

29

In what ways can government, businesses, and individuals invest human capital?

Government: education and health care; businesses: training people in skills; individuals: completing high school, going to college