economics 1 and 2
Terms
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- economic product
- goods/services that are useful, scarce, and transferable
- economic interdependence
- when multiple groups rely on each other to provide goods/services that they consume
- prediction
- know how to make the best choice in different situations
- paradox of value
- contradiction between necessities and value - cheap necessities, expensive non-necessities
- good
- item that is economically useful of satisfies a want
- capital good
- manufactured good used to produce other goods/services
- consumer good
- intended for final use by individuals
- what to produce, how to produce, for whom to produce
- Three basic questions society has to answer about the way their resources are used
- specialization
- factors of production perform tasks they can do better than others
- wealth
- accumulation of tangible, scarce, useful, transferable products
- production
- process of making and producing goods
- description, analysis, explanation, prediction
- four key elements of study of economics
- market
- mechanism that allows buyers and sellers to exchange a product
- explanation
- understand how economy works to address/fix problems
- division of labor
- work is arranged so that individuals do fewer tasks
- economic growth
- nation's total output of goods/services increases over time
- land, labor, capital, entrepreneurship
- four factors of production
- service
- work performed for someone
- description
- what the world around us looks like
- productivity
- measure of amount of output produced by given amount of input over specific period of time
- value
- worth expressed in dollars and cents
- utility
- capacity to be useful and provide satisfaction
- product market
- market where producers sell goods/services to consumers
- analysis
- discover why and how things work and happen
- human capital
- sum of skills, abilities, health, and motivation of people
- factor market
- market where productive resources are bought and sold