Term
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Definition
| All tangible things that satisfy people's wants and desires. |
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Term
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Definition
| All forms of intangible but useful activities that are valued by people. |
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Term
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Definition
| Those things used to produce goods and services. |
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Definition
| The condition whereby the resources, goods, and services available to individuals and society are limited relative to the wants and desires for them. |
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Term
| Economic Goods and Services |
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Definition
| Goods and services that are scarce. |
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Term
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Definition
| An implication of scarcity. The necessary sacrifices associated with making any choice. |
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Term
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Definition
| Things that are available in sufficient amounts and provide all that people want at zero cost. |
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Term
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Definition
| All forms of labor and skill used to produce goods and services. |
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Term
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Definition
| All resources other than human resources, such as machines and land. |
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Term
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Definition
| Any quality, characteristic, or skill an individual has that enhances the individual's productivity. |
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Term
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Definition
| Knowledge of production methods associated with producing a particular good. |
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Term
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Definition
| A costly bu necessary input in the process of economic exchange and growth. |
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Term
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Definition
| Any legal and/or enforceable rights to the use of resources of any kind. |
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Term
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Definition
| The sum total of the traditions, mores, laws, and governmental structures of an economy. |
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Term
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Definition
| Actual money expenditures. |
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Definition
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Term
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Definition
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Term
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Definition
| The highest-valued alternative forgone in making any choice. |
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Term
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Definition
| Given circumstances and preferences, people weigh the costs and benefits of choices in order to do the best they can for themselves. |
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Term
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Definition
| The difference between costs or benefits in an existing situation and after a proposed change. |
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Term
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Definition
| Looking at changes in the costs and benefits of a change from the status quo to a proposed new situation. |
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Term
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Definition
| A collection of buyers and sellers exchanging resources, goods, or services. |
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Term
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Definition
| The market-established opportunity costs of goods and services obtained through exchange. |
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Term
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Definition
| Any choice made through private markets. |
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Term
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Definition
| The economic analysis of political decision making, politics, and the democratic process. |
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Term
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Definition
| Direct exchange of one good or service for another without the use of money. |
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Term
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Definition
| A generally accepted medium of exchange. |
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Term
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Definition
| A sustained increase in the general level of prices. |
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Term
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Definition
| A simplified abstraction of the real world that approximates reality and makes problems easier to analyze. |
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Term
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Definition
| Incorrectly generalizing that what is true for a part is also true for the whole. |
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Term
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Definition
| The incorrect linking of unrelated events as a cause-and-effect relationship simply because one happens after the other. |
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Term
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Definition
| Observations, explanations, or predictions about economic life. |
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Term
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Definition
| Value judgments based on moral principles or preferences about how economic life should be. |
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Term
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Definition
| Analysis of economics on the individual, household, or business scale. |
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Term
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Definition
| Analysis of the behavior of an economy as a whole. |
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Term
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Definition
| A measure of the final goods and services produced by a country with resources located within that country. |
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Term
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Definition
| The value, measured at market prices, of all final goods and services produced in an economy in one year. |
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Term
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Definition
| The highest-valued alternative forgone in making any choice. |
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Term
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Definition
| An economic entity producing only one good or service, or the performance of a single task in a production process by an individual. |
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Term
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Definition
| Individual specialization in separate tasks involved with a production process. |
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Term
| Production Possibilities Frontier |
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Definition
| The curve that graphs all of the possible combinations of two goods that an economy can produce given the available technology, the amount of productive resources available, and the full utilization of these resources. |
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Term
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Definition
| As more scarce resources are used to produce additional units of one good, production of another good falls by larger and larger amounts. |
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Term
| Unemployment of Resources |
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Definition
| A situation in which some human and/or nonhuman resources that can be used in production are not utilized. |
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Term
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Definition
| Decisions based on the additional benefits and costs of small changes in a particular activity. |
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Term
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Definition
| The amount of nonhuman resources available in the economy. These include tools, land, machinery, equipment, and so on. |
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Term
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Definition
| A permanent increase in the productive capacity of the economy. |
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Term
| Marginal Opportunity Production Cost |
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Definition
| The number of units of one good that do not get produced with one additional unit of another good is produced. |
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Term
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Definition
| An economic entity's ability to produce a good at lower marginal opportunity cost than some other entity. |
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Term
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Definition
| The number of units of one good that exchange in the market for one unit of some other good. |
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Term
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Definition
| The ability of an economic entity to specialize and produce a greater amount of some good than another entity can. |
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Term
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Definition
| The opportunity costs of the resources directly associated with trade. |
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Term
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Definition
| The opportunity costs of the resources used in making trades; includes transaction costs, transportation costs, and artificial barriers to trade. |
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Term
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Definition
| The value of resources used in the transportation of goods that finalize any trade. |
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Term
| Artificial Barriers to Trade |
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Definition
| Restrictions created by the government that inhibit or prevent trade. |
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Term
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Definition
| A tax or levy on imported goods. |
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Term
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Definition
| A restriction or limit on the quantity of an imported good. |
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