Economics Chapter 1
Terms
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- entrepreneurship
- the special talent for searching out and taking advantage of new business opportunities and for developing new products and new ways of doing things
- opportunity cost
- the most highly valued opportunity or alternative forfeited or given up when a choice is made
- tangible
- able to be felt by touch
- profit
- payment to entrepreneurship resources
- socialism
- an economic system in which government owns and controls many of the resources
- rent
- payment to a land resource
- global economy
- an economy in which economic actions taken anywhere in the world may affect your standard of living
- mixed economy
- an economy that has features of both free enterprise and socialism
- microeconomics
- The study of small scale economics, such as: the study of unemployment in a particular industry
- scarcity
- the condition in whitch our wants are greater than the resources available to satisfy all those wants
- interest
- payment to capital resources
- resources
- anything used to produce goods or services, there are four categories: land, labor, capital, and entrepreneurship
- economic plan
- a government program specifying economic activities, such as what goods are to be produced and what prices will be charged
- income distribution
- the way all the income earned in a country is divided among different groups of income earners
- macroeconomics
- The study of large scale economics, such as: the study of unemployment that exists in a nation
- capital
- produced goods that can be used as resources for further production
- intangible
- not able to be felt by touch
- labor
- the physical and mental talents that people contribute to the production of goods and services
- wage
- payment to labor resources
- land
- all the natural resources found in nature
- utility
- a synonym for this word is satisfaction
- wants
- things that we desire to have
- free enterprise
- an economic system in which individuals own most (or all) of the resources in their business and control their use. Very little government control
- economic system
- the way in which a society decides what goods to produce, how to produce them, and for whom goods will be produced
- economics
- the science that studies the choices of people trying to satisfy their wants in a world of scarcity