Study Guide Flashcards
Something like air, food, or shelter that is necessary for survival
Need
The study of how people seek to satisfy their needs and wants by making choices
Economics
An item that we desire but that is not essential to survival
Want
Physical objects such as clothes or shoes
Good
Actions or activities that one person performs for another. (Haircuts, dental check-ups, and tutoring)
Services
Land, labor, and capital. Three groups of resources that are used to make all goods and services.
Factors Of Production
Any human-made resource that is used to create other goods and services. (Physical and human)
Capital
What goods and services should be produced? How should these goods and services be produced? Who consumes these goods and services?
Key Economic Questions
The method used by a society to produce and distribute goods and services
Economic System
The study of the behavior and decision making of entire economics
Macroeconomics
The study of the economic behavior and decision making of small units, such as individuals, families, and businesses.
Microeconomics
Level of economic prosperity
Standard of living
A shared good or service for which it would be impractical to make consumers pay individually and to exclude non-payers.
Public good
An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.
Externality
A good that consumers demand less of when their incomes increase
Inferior goods
