Economics Unit 1 Ch 1 Test Review Sheet

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  1. Economics
    Social Science dealing with the study of how people satisfy seemingly unlimited and competing wants with the careful use of scarce resources
  2. Need
    Basic equipment for survival; includes food, clothing, and/or shelter
  3. Want
    Way of expressing or communicating a need; a broader classification than needs
  4. Factors of production
    Productive resources that make up the four categories of land, capital, labor, and entrepreneurship
  5. Entrepreneur
    Risk-taking individual in search of profits; one of four factors of production
  6. Production
    Process of creating goods and services with the combined use of land, capital, labor, and entrepreneurship
  7. 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
  8. Economic Product
    Good or service that is useful, relatively scarce and transferable to others
  9. Good
    Tangible economic product that is useful, relatively scarce, transferable to others; used to satisfy wants and needs
  10. Consumer Good
    Good intended for final use by consumers rather than businesses
  11. Service
    Work or labor performed for someone; economic product that includes haircuts, home repairs, forms of entertainment
  12. Value
    Worth of a good or service as determined by the market
  13. Paradox of value
    Apparent contradiction between the high value if nonessentials and low value essentials
  14. Utility
    Ability or capacity of a good or service to be useful and give satisfaction to someone
  15. Wealth
    Sum of tangible economic goods that are scarce, useful, and transferable from one person to another; excludes services
  16. Specialization
    Assignment of tasks so that each worker performs fewer functions more frequently; same as division of labor
  17. Human Capital
    Sum of peoples' skills, abilities, health, and motivation
  18. Economic Interdependence
    We rely on others, and others rely on us, to provide the good and services that we consume
  19. Cost-Benefit Analysis
    A way of thinking about a problem that compares the costs of an action to the benefits received.
  20. Free-enterprise economy
    Consumers and privately owned businesses, rather than the government, make the majority of the WHAT, HOW, and FOR WHOM decisions
  21. Standard of living
    Quality of life based on the possession of the necessities and luxuries that make life easier
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Economics Unit 1 Ch 1 Test Review Sheet
chapter 1 econ
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