Lesson 1 Vocab Flashcards
(17 cards)
Economics
The branch of knowledge concerned with the production, consumption, distribution of goods and services and the transfer of wealth
(Study of ppl and the choices we make)
Microeconomics
The study of individuals, households and companies behavior in decision making
(The science of how ppl make everyday spending decisions on a small scale)
Macroeconomics
The branch of economics that studies the behavior and performance of an economy as a whole (City, Nation, global)
Scarcity
The condition that results from society not having enough resources to produce all the things ppl would like to have
Need
Basic requirements for survival (food, clothing, shelter)
Want
Something we would like to have but don’t necessarily need for survival (computer, cell phone etc)
Goods
A useful, tangible item(physical item) that is used to satisfy a need or a want
Durable good
An item that lasts 3 years or more when used regularly
Non- Durable item
An item that lasts fewer than 3 yrs when used regularly
Consumer good
Goods bought and used by individual consumers(shoes)
Capital Good
A tool or good used to produce other goods (machines, wood, steel)
Services
Work or labor performed by someone (haircut, car repair)
Value
The monetary worth of a good or service
Paradox of value
A contradiction between high values of a nonessential item (like diamonds) and a low value of an essential item (like water)
Adam Smith
(Father of capitalism)- he wrote a book called the wealth of nations which argued that for something to have value it most be scarce and have utility
Wealth
The accumulation of products that are tangible, scarce and have utility
TINSTAAFL
there is no such thing as a free lunch
