Term
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Definition
| W = desires that can be satisfied by consuming a good or service/N = things such as food, clothing, and shelter that are necessary for survival. |
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Term
| Positive statements/Economics |
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Definition
| A way of describing and explaining economics as it is |
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Term
| Normative Statements/Economics |
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Definition
| A way of describing and explaining what economics behavior ought to be, not what it actually is. |
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Term
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Definition
| the study of the behavior of individual players - such as individuals, families, and businesses - in an economy. |
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Term
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Definition
| The study of the behavior of the economy as a whole; concerned with large-scale economic activity. |
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Term
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Definition
| a situation that exists when there are not enough resources to meet human wants. |
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Term
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Definition
| the study of how individuals and societies satisfy their unlimited wants with limited resources. |
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Term
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Definition
| persons who buy goods or services for personal use. |
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Term
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Definition
| persons who make goods or provides services |
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Term
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Definition
| G = physical objects, such as food, clothing, and furniture, that can be purchased/ S = work that one person does for another for payment |
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Term
| Resources/Factors of Production |
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Definition
| the economic resources needed to produce goods and services |
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Term
| Capital goods (investment goods) |
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Definition
| Made from resources to help in other areas |
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Term
| Consumer goods (consumption goods) |
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Definition
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Term
| 3 Basic economic questions |
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Definition
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Term
| "There is no such thing as a free lunch" |
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Definition
| Everything has a cost! (time, money...etc.) |
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Term
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Definition
| The alternative someone gives up when making an economic choices |
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Term
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Definition
| the value of something that is given up by choosing one alternative over another |
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Term
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Definition
| a simplified representation of economic activities, systems, or problems |
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Term
| Production Possibilities Curve |
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Definition
| a graph used to illustrate the impact of scarcity on an economy |
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Term
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Definition
| a result of economic growth or change in technology, or change in number of resources |
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Term
| PPC Points (inside, on, outside) |
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Definition
| inside = "inefficient" (unemployment)/ outside = "Unattainable" (more employment than available)/ on = "efficient" (total employment) |
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Term
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Definition
| economic growth, change in technology, change in number of resources |
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Term
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Definition
| an economic system in which people make economic decisions based on customs and beliefs that have been handed down from one generation to the next. |
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Term
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Definition
| an economic system in which the government makes all economic decisions. |
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Term
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Definition
| an economic system based on individual choice and voluntary exchange. |
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Term
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Definition
| Laid out the foundation for modern economics. |
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Term
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Definition
| the principle that the government should not interfere in the economy. |
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Term
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Definition
| an economic system that has elements of traditional, command, and market economies; the most common economic system. |
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Term
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Definition
| the rights of individuals and groups to own resources and businesses. |
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Term
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Definition
| P = the financial gain a seller makes from a business transaction/ pm = the incentive that encourages people and organizations to improve their material well-being by seeking to gain from economic activities. |
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Term
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Definition
| the effort of two or more people acting independently to get business by offering the best deal. |
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Term
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Definition
| a trade in which the parties involved anticipate that the benefits will outweigh the cost. |
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Term
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Definition
| a visualization of all interaction in a market economy. |
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Term
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Definition
| the market in which goods and services are bought and sold. |
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Term
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Definition
| the market for the factors of production -- land, labor...etc. |
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Term
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Definition
| another name for capitalism, an economic system based on private ownership of productive resources. |
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Term
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Definition
| the incentive that encourages people and organizations to improve their material well-being by seeking to gain from economic activities. |
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Term
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Definition
| What the public wants/needs and works for. |
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Term
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Definition
| Goods and services that are provided by the government and consumed by the public as a group. |
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Term
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Definition
Negative: an externality that is a negative effect, or cost, for people who were not involved in the original economic activity. (2nd hand smoking)
Positive: people aren't involved but they benefit from it. (Neighbor has a beautiful garden/yard) |
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