Card Set Information
intro to economics
a condition that arises because society doesn't have enough resources to produce all the things people would like to have
study of how people can best use scarce resources to satisfy unlimited wants
a basic requirement for survival EX: food, clothes, and shelter
way of expressing or communicating a need
the willingness and ability to purchase a desired object
goods and services that are useful, relatively scarce, and transferable to others
tangible commodity like a book, car, or stereo
tangible economic product used by consumers to satisfy wants and needs
work that is performed for someone
things that are so plentiful EX: sunshine, rainfall, and fresh air
manufactured good used to produce other goods and services
something has a worth that can be expressed in dollars and cents
paradox of value-
essentials had little value while other items had much higher ones
the ability or capacity of a good or service to be useful and give satisfaction to someone
tangible goods that have value and can be owned
people who use goods and services to satisfy wants and needs
sovereign or ruler of the market
the process of using up goods and services in order to satisfy human wants
the use of a good or service to impress others
factors of production-
land, labor, and capital used to produce goods and services
natural resource and fixed or in limited supply
people with all their efforts and abilities
the tools, equipment, and factories used in the production of goods and services
the money used to but the tools and equipment used in production
process of creating goods and services
the cost of the next best alternative use of money, time, or resources when one choice is made rather than another
free enterprise economy-
one where privately owned businesses and consumers, rather than the government, jointly make the WHAT, HOW, and FOR WHOM decisions
What effect would a large increase in each citizen's income have on the economy of a nation?
the entire economy would come to a halt until people found that their money was practically worthless
What causes scarcity?
the lack of resources needed to make all the things people want
What is the difference between a need and a want?
a need is a requirement, a want is a mean of expressing a need
What is the relationship between goods, services, and economic products?
they are things that people desire
Why is the consumer in the United States considered sovereign?
the consumer is the ruler of the market and is always right
How does the efficient use of land, labor, and capital help satisfy our wants?
they provide a means for a society to produce and distribute its goods and services
What part does opportunity cost play in economic decision making?
recognizing and evaluating alternatives as well as making choices from among these alternatives