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Flashcards in Intro to Economics Deck (30)
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1

study of how people use scarce resources to satisfy their wants

economics

2

the situation that exists because wants are unlimited and resources are limited

scarcity

3

desires that can be met by consumer products

wants

4

things necessary for survival

needs

5

physical objects that can be bought

goods

6

work one person does for another for pay

services

7

person who buys goods or services for personal use

consumer

8

person who makes a good or provides a service

producer

9

what are the economic questions

what will be produced, how will it be produced, and for whom will it be produced

10

what is it called when a country lets producers and consumers decide what will be produced

market economy or capitalism

11

if a country has an unskilled labor force, what kind of labor methods will they likely use

labor intensive

12

if a country has a skilled labor force, what kind of labor methods will they likely use

capital intensive

13

what are the four factors of production

land, labor, capital, and entrepreneurship

14

benefits that encourage people to act a certain way

incentives

15

benefits or satisfaction gained from using a good or service

utility

16

alternative people give up when they make a choice

trade-off

17

the value of the next-best thing alternative that a person gives up

opportunity cost

18

examination of costs, expected benefits of choices

cost-benefit analysis

19

the additional cost of using one more unit of a good or service

marginal cost

20

additional benefit of using one more unit of a good or service

marginal benefit

21

simplified representations of economic forces

economic models

22

what simplifies economic interactions

Production Possibilities Curve (PPC)

23

producing fewer goods and services than possible

underutilization

24

producing the maximum number of goods and services possible

efficiency

25

numerical data or information

statistics

26

behavior of individual players in an economy

microeconomics

27

behavior of economy as a whole

macroeconomics

28

describes and explains economic behavior as it is

positive economics

29

studies what economic behavior should be

normative economics

30

what guides marketplaces, benefits, sellers, and buyers

Invisible hand