Week 2 Flashcards
(9 cards)
1
Q
Resources
A
Are what ppl use to produce G&S. Has 3 types: Natural, capital & human resources.
2
Q
Capital
A
Man-made resources assisting production of G&S to earn $
3
Q
Enterprise
A
Ability to recognize demand for new G&S.
4
Q
Land
A
Natural resources & raw materials from environment
5
Q
Labour
A
Human resources in workforce needed for G&S production (physically & mentally)
6
Q
Free goods
A
Goods without any opportunity cost
7
Q
Economic model
A
A simplified representation of economic reality shows the relationship b/w certain economic variables
8
Q
Marginal analysis
A
Change in total benefit/cost from producing 1 extra output
9
Q
Principle of decreasing marginal benefit
A
When more of something’s consumed, the extra benefit you get decreases
