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36 Cards in this Set
- Front
- Back
fundamental economic problem--results from scarce resources and unlimited wants
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scarcity
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study of how people satisfy seemingly wants with the careful use of scarce resources
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economics
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basic requirement for survival--food, clothing, shelter
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need
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way of expressing/communicating a need, broader classification than needs
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want
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productive resources that make up 4 categories of land, capital, labor, and entrepreneur
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factors of production
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natural resources ("gifts of nature") that were created by human effort
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land
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tools, equipment, and factories used in production of goods and services
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capital
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Money used to buy the tools and equipment used in production
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financial capital
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people with all their abilities/efforts--does not include the entrepreneur
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labor
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risk-taking individual in search of profits
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entrepreneur
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process of creating goods and services with the combined use of land, capital, labor, and entrepreneur
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production
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dollar value of all final goods, services, structures in year period
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Gross Domestic Product (GDP)
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good or service that is useful, relatively scarce, and transferrable to others
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economic product
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tangible economic product--used to satisfy wants/needs
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good
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good intended for final use by consumers rather than business
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consumer good
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tool, equipment, or other manufactured good used to produce other goods/services
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capital good
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work/labor performed for someone
i.e. haircuts, home repairs, forms of entertainment |
service
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worth of a good or service as determined by the market
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value
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apparent contradiction between high value of nonessentials and low value of essentials
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paradox of value
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ability or capacity of a good or service to be useful or give satisfaction
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utility
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sum of tangible economic goods that are scarce, useful, and transferable
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wealth
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meeting place/mechanism allowing buyers and sellers of economic product come together
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market
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market where productive resources are bought and sold
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factor market
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market where goods and services are offered for sale
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product market
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sustained period during which a nation's total output of goods and services increases
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economic growth
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degree to which productive resources are used efficiently-labor, all factors
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productivity
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division of work into a number of separate tasks to be performed by different workers
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division of labor
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assignment of tasks so that each worker performs fewer function more frequently
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specialization
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sum of people's skills, abilities, health, and motivation
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human capital
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economic activities in one part of the country or world affect what happens elsewhere
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economic interdependence
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alternative that must be given up when one is chosen rather than another
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trade-offs
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cost of the next best alternative use of money, time, or resources when one choice is made rather than another
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opportunity costs
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diagram representing maximum combinations of goods and/or services an economy
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production possibilities frontier
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way of thinking that compose the cost of an action to its benefits
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cost-benefit analysis
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market economy in which privately owned businesses have freedom to operate for a profit with limited government intervention
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free enterprise economy
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quality of life based on ownership of necessities and luxuries that make life easier
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standard of living
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