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Definition
| The condition in which human wants are forever greater than the available supply of time, good, and resources. |
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Definition
The basic categories of inputs used to produce goods and services.
Also called factors of production.
Divided into three categories:
Land - Labor - Capital |
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Definition
| Any natural (renewable) resource provided by nature that is used to produce goods and services. |
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Definition
| Metal and physical capacity of workers to produce goods and services. |
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Definition
| Creative ability of individuals to seek profits by taking risks and combining resources to produce innovative products or services. |
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Definition
| Human-made goods that are used to produce other goods and services. |
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Definition
| The study of how society chooses to allocate it's scarce resources to the production of goods and services in order to satisfy unlimited wants. |
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Definition
| The branch of economics that studies decision making for the economy as a whole. |
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Definition
| The branch of economics that studies decision making by a single individual, household, firm, industry, or level of government. |
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Definition
| A simplified description of reality used to understand and predict the relationship between variables. |
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Definition
| A Latin phrase that means while certain variables change, "all other things remain unchanged." |
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Definition
| An analysis limited to statements that are verifiable. |
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Definition
| An analysis based on value judgment. |
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Definition
A positive association between two variables.
When one increases, the other increases
or
When one decreases, the other decreases |
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Term
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Definition
A negative association between two variables.
When one increases, the other decreases
or
When one decreases, the other increases |
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Term
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Definition
| The ratio of change in the variable on the vertical axis and to the change in the variable on the horizontal axis. |
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Term
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Definition
A zero association between two variables.
When one variable changes, the other variable remains unchanged. |
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Term
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Definition
| The best alternative sacrificed for a chosen alternative. |
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Term
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Definition
| An examination of the effect of additions to or subtraction from a current situation. |
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Term
| Production possibilities curve |
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Definition
| A curve that shows that maximum combinations of two outputs an economy can produce in a given period of time with its available resources and technology. |
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Term
| Law of increasing opportunity costs |
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Definition
| The principle that the opportunity cost increases as production of one output expands. |
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Term
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Definition
| The ability of an economy to produce greater levels of output, represented by an outward shift of its productions possibilities curve. |
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Term
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Definition
| The accumulations of capital, such as factories, machines, and inventories, that is used to produce goods and services. |
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