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21 Cards in this Set
- Front
- Back
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Who wrote "The Wealth Of Nations"? |
Adam Smith |
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What is an economic enigma? |
a problem to be solved OR an economic problem to be solved |
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Economics has traditionally been defined as the study of what? |
how we use our limited resources to satisfy our limited wants |
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What is the difference between macro and micro economics? |
micro is the economy of an individual, household, and business macro is the economy of the world, business, or country |
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What do we call anything that is used to produce a product? |
a resource (oil, tree, salt) |
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What does scarcity mean? |
a limited resource, once its gone its gone forever, nonrenewable (coal, oil, oxygen) |
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What is the difference between a good and a service? |
a good is a thing, a physical object (massage chair, glasses, building) a service is done by someone else (teacher, worker) |
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What is a shortage? |
something that is gone temporarily OR goes away for a whole and comes back (iPhone, forest, trees) |
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What is the difference between a shortage and a scarcity? |
a shortage is gone temporarily and scarcity is gone forever |
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What is the difference between inputs and outputs? |
inputs is the resource that goes into the process and outputs are the goods/services that come out like trees are the input and paper is output |
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What do we call a person who invents are creates new businesses? |
an entrepreneur |
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What is the difference between renewable and nonrenewable resources? |
renewable resources can be replaced once they're gone (trees, water) nonrenewable resources are resources that once they're gone they're gone forever (coal, oil) |
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What is human capital? |
the measure of how much education experience, and training you get |
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What is physical capital? |
physical things that help produce goods (pens, buildings, machines, tools) |
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What is productivity? |
the measure of output per unit of input |
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What are 3 factors of production? |
land, labor, and capital |
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What is utility? |
the pleasure or satisfaction you get from consuming a good or service |
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What is trade off? |
choosing one thing over another like how Mick Jagger chose music over education |
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What is the guns vs butter trade off? |
guns is the military and the butter is the social services |
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What is opportunity cost? |
the value you gave up to get the other OR the value of the second best option |
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What is the difference between marginal and negative utility? |
marginal is the lack of pleasure or satisfaction you get, negative utility is the lack of pleasure or satisfaction you get |
