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gerardcb
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Economics
Social Science dealing with the study of how people satisfy seemingly unlimited and competing wants with the careful use of scarce resources
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Need
Basic equipment for survival; includes food, clothing, and/or shelter
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Want
Way of expressing or communicating a need; a broader classification than needs
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Factors of production
Productive resources that make up the four categories of land, capital, labor, and entrepreneurship
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Entrepreneur
Risk-taking individual in search of profits; one of four factors of production
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Production
Process of creating goods and services with the combined use of land, capital, labor, and entrepreneurship
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G.D.P. (Gross Domestic Product)
Dollar value of all final goods, services, and structures produced within a country's national borders during a one-year period
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Economic Product
Good or service that is useful, relatively scarce and transferable to others
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Good
Tangible economic product that is useful, relatively scarce, transferable to others; used to satisfy wants and needs
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Consumer Good
Good intended for final use by consumers rather than businesses
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Service
Work or labor performed for someone; economic product that includes haircuts, home repairs, forms of entertainment
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Value
Worth of a good or service as determined by the market
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Paradox of value
Apparent contradiction between the high value if nonessentials and low value essentials
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Utility
Ability or capacity of a good or service to be useful and give satisfaction to someone
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Wealth
Sum of tangible economic goods that are scarce, useful, and transferable from one person to another; excludes services
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Specialization
Assignment of tasks so that each worker performs fewer functions more frequently; same as division of labor
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Human Capital
Sum of peoples' skills, abilities, health, and motivation
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Economic Interdependence
We rely on others, and others rely on us, to provide the good and services that we consume
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Cost-Benefit Analysis
A way of thinking about a problem that compares the costs of an action to the benefits received.
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Free-enterprise economy
Consumers and privately owned businesses, rather than the government, make the majority of the WHAT, HOW, and FOR WHOM decisions
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Standard of living
Quality of life based on the possession of the necessities and luxuries that make life easier
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