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Flashcards in Chapter 1 Vocab Deck (22)
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1

Agricultural Economics

An applied social science that deals with how producers, consumers, and societies use scarce and natural resources in the production, processing, marketing, and consumption of food and fiber products

2

Biological resources

Scarce resources such as livestock, wildlife, and different genetic varieties of crops.

3

Capital

Also know as manufactured resources

Examples include machines, equipment, and a product that has not been used in the year it was made

4

Capitalism

The free market economic system in which individuals own resources and have the right to employ their time and resources however they choose, with minimal legal constraints from the government

Prices signal the value of resources and economic goods (supply and demand)

5

Communism

A type of economic system in which resources are generally collectively owned and the government decides how human and nonhuman resources are to be utilized across the various sectors of the economy

Used in places such as North Korea

6

Economics

A social science that deals with how consumers, producers, and societies choose among the alternative uses of scarce resources in the process of producing, exchanging, and consuming goods and services

7

Fallacy of Composition

What is true in an individual situation is not necessarily true for a large population

Doubling your wheat production is good for you, but if everyone does it, wheat becomes less valuable.

8

Food and fiber system

An example of microeconomics.

Has issues related to resource use in production, processing, distribution, and consumption of products in this markets

9

Human Resources

Services provided by laborers and management to the production of goods and services that are also considered scarce

10

Macroeconomics

A branch of economics that focuses on broad aggregates such as the growth of the nation’s gross domestic product (GDP), the gaps between the economy’s potential GDP and its current GDP, and trade-offs between unemployment and inflation.

11

Management

Another form of human resource, provides entrepreneurial services, which may entail the formation of a new firm, the renovation or expansion of an existing firm, the taking of financial risks, and the supervision of the use of the firm’s existing resources so that its objectives can be met.

12

Manufactured resources

A category of scarce resources

Examples are machines, equipment, and structures

Also known as capital

13

Microeconomics

A branch of economics that focuses on the economic actions of individuals or specific groups of individuals

14

Mixed economic system

Markets are not entirely free to determine price in some markets, but are free in others

The United States is an example of this economic system

15

Natural resources

A scarce resource

Examples of this are land and mineral deposits

16

Normative economics

Focuses on “What should be?” or “What ought to be?” questions.

17

Opportunity cost

Refers to the implicit cost associated with the next best alternative in a set of choices available to decision makers

Do the economic benefits of one choice exceed the costs, including the forgone income associated with the next best alternative

18

Positive economics

Focuses on “what is...?” and “What if...?” questions

19

Scarce resources

Resources with only a limited quantity available

Can be broken down into the following categories 1) natural and biological resources; 2) Human Resources; and 3) manufactured resources

20

Scarcity

A relative concept that refers to the fixed quantity of resources that are available to meet societal needs.

21

Socialism

Winston Churchill called this “a philosophy of failure, the creed of ignorance, and the gospel of envy; it’s inherent virtue is the equal sharing of misery”

A type of economic system in which resources are generally collectively owned and the government decides how human and nonhuman resources are to be utilized across the various sectors of the economy

22

Specialization

Focusing the use of out resources on a specific task

Ex: Idaho making a bunch of potatoes, and choosing to import wheat and oranges from somewhere else