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  1. scarcity-
    a condition that arises because society doesn't have enough resources to produce all the things people would like to have
  2. economics-
    study of how people can best use scarce resources to satisfy unlimited wants
  3. need-
    a basic requirement for survival EX: food, clothes, and shelter
  4. want-
    way of expressing or communicating a need
  5. demand-
    the willingness and ability to purchase a desired object
  6. economic products-
    goods and services that are useful, relatively scarce, and transferable to others
  7. good-
    tangible commodity like a book, car, or stereo
  8. consumer good-
    tangible economic product used by consumers to satisfy wants and needs
  9. service-
    work that is performed for someone
  10. free products-
    things that are so plentiful EX: sunshine, rainfall, and fresh air
  11. capital good-
    manufactured good used to produce other goods and services
  12. value-
    something has a worth that can be expressed in dollars and cents
  13. paradox of value-
    essentials had little value while other items had much higher ones
  14. utility-
    the ability or capacity of a good or service to be useful and give satisfaction to someone
  15. wealth-
    tangible goods that have value and can be owned
  16. consumers-
    people who use goods and services to satisfy wants and needs
  17. consumer sovereignty-
    sovereign or ruler of the market
  18. consumption-
    the process of using up goods and services in order to satisfy human wants
  19. conspicuous consumption-
    the use of a good or service to impress others
  20. factors of production-
    land, labor, and capital used to produce goods and services
  21. land-
    natural resource and fixed or in limited supply
  22. labor-
    people with all their efforts and abilities
  23. capital-
    the tools, equipment, and factories used in the production of goods and services
  24. financial capital-
    the money used to but the tools and equipment used in production
  25. production-
    process of creating goods and services
  26. opportunity cost-
    the cost of the next best alternative use of money, time, or resources when one choice is made rather than another
  27. free enterprise economy-
    one where privately owned businesses and consumers, rather than the government, jointly make the WHAT, HOW, and FOR WHOM decisions
  28. 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
  29. What causes scarcity?
    the lack of resources needed to make all the things people want
  30. What is the difference between a need and a want?
    a need is a requirement, a want is a mean of expressing a need
  31. What is the relationship between goods, services, and economic products?
    they are things that people desire
  32. Why is the consumer in the United States considered sovereign?
    the consumer is the ruler of the market and is always right
  33. 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
  34. What part does opportunity cost play in economic decision making?
    recognizing and evaluating alternatives as well as making choices from among these alternatives
Card Set:
2015-02-10 04:54:29
economics intro
intro to economics
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