Key Words Flashcards
(16 cards)
What is an economy?
An area where economic agents produce, perchance, and consume goods and services.
What is economics?
The study of how society uses limited resources to satisfy unlimited wants through the production and consumptions of goods and serves.
What are goods and services?
Goods are physical objects that are natural or manufactured that command a price in the market. Services are often intangible activities that are non-transferable.
What is production?
The total value of all the goods and services that are produced in an economy over a period of time.
What is relative scarcity?
The economic problem that is resources are limited and can be in inadequately distributed.
Describe what production process is.
The making of goods and provision of services.
What are economic services?
Inputs required to complete the production process.
What is land from an economic view?
Natural resources.
What is labour?
People power available to work in the production process.
What is capital in economics?
The machinery, plant, and equipment made by people to assist in the manufacture of goods and services.
What is enterprise?
The qualities individuals can possess that make them able to perceive market opportunities and effectively coordinate the production process.
What is an entrepreneur?
Someone who is willing to take risks and start a new business with the intention of making money.
What is opportunity cost?
The value of the lost alternative use to which economic resources could’ve been relocated.
What is cost-benefit analysis?
An analysis involving a list of the costs and benefits of each alternative proposal and comparing them to reach a conclusion.
What is net benefit?
When the benefits outweigh the costs.
What is the difference between a good and a service?
Services are often regarded as intangible, non-transferable activities. Goods are physical, like a muesli bar. A haircut, however, is a service and you can not pass it on to someone else.
