Unit 1: Introduction to Economics (Vocabulary) Flashcards
(42 cards)
Allocate Definition
to distribute
Entrepreneur Definition
an individual who uses the factors of production to create goods and services
Factors of Production Definition
the inputs used in the production of goods or services
Finite Definition
having limits or bounds
Good Definition
a physical object produced for consumers to buy, such as food, clothing, or a video game; a tangible material or product that satisfies human wants and provides a benefit, or utility, that has a degree of scarcity.
Human Capital Definition
the knowledge and skills a worker gains through education and experience
Physical Capital Definition
human-made objects used to create goods and services
Labor Definition
the effort people devote to tasks for which they are paid
Limited Resources Definition
factors of production needed to create a product that have a finite amount
Natural Resources Definition
also referred to as land resources are materials and substances found naturally in the environment; often used to create goods and services
Opportunity Costs Definition
the value of the next highest-valued alternative use of the resource(s) that an individual, business, or government forgoes when deciding how to allocate resources
Scarcity Definition
the problem of having fewer resources than needed to fulfill human wants and needs; having limited resources and unlimited wants
Service Definition
actions or activities that one person performs for another, such as medical care or haircuts; an economic activity offered as a product that is not tangible, cannot be stored, and does not result in ownership.
Trade-off Definition
an exchange or compromise in which you give up one thing in order to get something else that you also desire
Unlimited Wants Definition
Consumers will always want more. There is always something else that a consumer will want or need.
Utility Definition
the usefulness or enjoyment a consumer can get from a service or good
Production Possibilities Curve Definition
a curve that shows the various combinations of the amounts of two goods that can be produced with the given quantities of limited resources.
Unemployment Definition
the number or proportion of unemployed people in the economy.
Command Economy Definition
an economy where the allocation of scarce resources, and the goods and services that the economy produces, are determined by a government
Consumer Sovereignty Definition
a situation in an economy where the output of producers is controlled by the wants and needs of consumers
Market Economy Definition
an economy where price signals resulting from supply and demand forces within the economy determine the goods and services that the economy produces
Mixed Economy Definition
an economy that blends the structure of a market economy and a command economy to allocate scarce resources and determine the goods and services produced within the economy
Incentives Definition
rewards or penalties that influence people’s behavior
Profit Definition
the financial gain or benefit from exchanges or investments within an economy
