Chapter 3 Flashcards
(31 cards)
Body of knowledge that relates to producing and using goods and services that satisfy human wants
Economics
Desire for scarce material goods and services
Economic wants
Desires for non-material things that are not scarce
Noneconomic wants
Ability of a good or service to satisfy a want
Utility
Anyone who aids in creating a utility
Producer
Land, labor, capital goods, and management - the four basic resources that are combined to create useful goods and services
Factors of production
Anything produced by nature that affects the productive ability of a country
Natural resources
Human effort, either physical or mental, that goes into the production of goods and services
Labor
Accumulated knowledge and skills of human beings; the total value of each persons education and acquired skills
Human capital
Buildings, tools, machines and other equipment that are used to produce other goods but do not directly satisfy human wants
Capital Goods
Production of capital goods
Capital formation
Goods and services that satisfy people’s economic wants directly
Consumer Goods
Organized way for a country to decide how to use its productive resources; that is, to decide what, how, and for whom goods and services will be produced
Economic system
Economic system that determines what, how and for whom goods and services are produced by coordinating individual choices through arrangements that aid buying and selling goods and services
Market economy
An economic system in which the method for determining what, how and for whom goods and services are produced is decided by a central planning authority
Command economy
An economic system that uses aspects of a market and a command economy to make decisions about what, how and for whom goods and services are produced
Mixed Economy
Transfer of authority to provide a good or service from a government to individuals or business
Privatization
An economic - political system in which private citizens are free to go into business for themselves, to produce whatever they choose to produce, and to distribute what they produce as they please
Capitalism
An economic- political system in which the government controls and regulates the means of production
Socialism
Forced socialism where all / almost all of the productive resources of a nation are owned by the government
Communism
Items of value that individuals can own, use and sell
Private property
The incentive, as well as the reward, for producing goods and services
Profit
Number of similar products that will be bought at a given time at a given price
Demand
Number of similar products that will be offered for sale at a particular time and at a particular price
Supply
