Term
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Definition
| The lands, water, metals, minerals, animals, and other gifts of nature that are available for producing goods and services |
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Term
| Renewable Natural Resources |
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Definition
Our supply of forests
Sea and land animals
Water and Grasses |
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Term
| Nonrenewable Natural Resources |
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Definition
| Metal and Mineral Resources |
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Term
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Definition
Want- things we desire
Need-Things we require
Demand-Wants that are backed by purchasing power |
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Term
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Definition
| is the study of how we work together to transform scarce resorces into goods and services to satisfy the most pressing of our unlimited wants, and how we distribute these goods and services among ourselves |
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Term
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Definition
| the ability of consumers to exercise complete control over what goods and services the economy produces by choosing what goods and services to buy (works best in Capital Society |
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Term
| Economics 4 central issues |
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Definition
1. Who produces what?
2. how it is produced?
3. Who consumes?
4. Who decides? |
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Term
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Definition
| It studies the behavior of an individual household, firm or even industry |
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Term
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Definition
| If focuses on the behavior of the economy as a whole |
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Term
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Definition
| a subset of economics that analyzes the way economy actually operates |
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Term
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Definition
| a subset of economics founded on value judgements and leading to assertions of what ought to be |
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Term
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Definition
Labor
Capital
Land
Entrepreneurship |
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Term
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Definition
| Manufactured goods used to make and/ or market other goods and services |
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Term
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Definition
| The physical and intellectual ecfort of people engaged in producing goods and services |
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Term
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Definition
| the knowledge and skills acquired by labor, principally through education and training |
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Term
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Definition
| Anatural-state resource such as real estate, grasses, forest, metals, and minerals |
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Term
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Definition
| in order to understand what is meant by PPF (production possibilities frontier, we would first consider a hypothetical economy. |
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Term
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Definition
| A person who alone assumes the risks and uncertainties of a businesss |
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Term
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Definition
| The combinations of goods that can be produced when resources and technology are used fully and efficiently |
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Term
| Production Possibilities Curve |
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Definition
available resources are used fully
most efficient combination of resources |
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Term
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Definition
| the quantity of other goods that must b given up to obtain a good |
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Term
| What choices are made along the production possibilities curve? |
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Definition
| to have more of one product, units of the other product have to be given up |
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Term
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Definition
| the opportunity cost of producing a good increases as more of the good is produced |
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Term
| How do we have more of everything? |
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Definition
| by increasing our resources |
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Term
| What other ways can we increase our PPF? |
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Definition
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Term
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Definition
| an idea that takes the form of new applied technology |
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Term
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Definition
| the division of labor into specialized activities. |
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Term
| Does Division of labor increase productivity |
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Definition
| yes. people become more proficient in one activity which results in greater output per person |
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Term
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Definition
| A country's ability to produce a good using fewer resources than the country with which it trades |
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Term
| Theory of absolute advantage |
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Definition
| States that a country should completely specialize and produce the good in which it has absolute advantage |
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Term
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Definition
| A country's ability to produce a good at a lower opportunity cost than the country with which it trade |
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Term
| Theory of Comparative Advantage |
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Definition
| states that a country should completely specialize and produce the good in which it has comparative advatage |
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Term
| should a country produce tat with which it has an absolute advantage? |
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Definition
| no. not unless it also has a comparative advantage in those goods and services |
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Term
| what should a country specialize in producing? |
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Definition
| in those goods and services in which it has a comparative advantage because it will raise the opportunity costs may be too high |
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