Term
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Definition
| Fundamental economic problem of meeting people's virtually unlimited wants with scarce resources |
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Term
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Definition
| Social science dealing with how people satisfy seemingly unlimited and competing wants with the careful use of scarce resources |
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Definition
| Basic requirement for survival, including food, clothing, and shelter |
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Definition
| Something we would like to have but is not necessary for survival |
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Term
| Three Basic Economic Questions |
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Definition
1. What to produce
2. How to Produce
3. For whom to produce |
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Term
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Definition
| Productive resources that make up the four categories of land, capital, labor, and entrepreneurs |
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Term
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Definition
| Natural resources or other "gifts of nature" not created by human effort |
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Definition
| Tools, equipment, and factories used in the production of goods and services |
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Term
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Definition
| People with all their efforts, abilities, and skills. |
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Term
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Definition
| Risk-taking individual in search of profits |
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Term
| Gross Domestic Product (GDP) |
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Definition
| Dollar value of all final goods, services, and structures produced within a country's borders during a one-year period |
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Term
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Definition
| Tangible economic product that is useful, relatively scarce, and transferable to others |
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Term
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Definition
| Good intended for final use by consumers rather than businesses |
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Term
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Definition
| A good that lasts for at least three years when used regularly |
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Term
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Definition
| A good that wears out or lasts fewer than three years when used regularly |
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Term
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Definition
| Work or labor performed for someone |
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Term
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Definition
| Monetary worth of a good or service as determined by the market |
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Term
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Definition
| apparent contradiction between the high monetary value of a nonessential item and the low value of an essential item |
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Term
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Definition
| Ability or capacity of a good or service to be useful and give satisfaction to someone |
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Term
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Definition
| Sum of tangible economic goods that are scarce, useful, and transferable form one person to another |
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Term
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Definition
| Meeting place or mechanism that allows buyers and sellers to come together |
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Term
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Definition
| Market where the factors of production are bought and sold |
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Term
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Definition
| Market where goods and services are bought and sold |
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Term
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Definition
| Increase in a nation's total output of goods and services over time |
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Term
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Definition
| Measure of the amount of output produced with a given amount of productive factors |
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Term
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Definition
| Sum of people's skills, abilities, health, knowledge and motivation |
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Term
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Definition
| Division of work into a number of separate tasks to be performed by different workers |
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Term
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Definition
| Assignment of tasks to the workers, factories, regions, or nations that can perform them more efficiently |
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Term
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Definition
| Mutual dependency of one person's, firm's, or region's economic activities on another's |
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Term
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Definition
| Alternative that is available whenever a choice is to be made |
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Term
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Definition
| Cost of the next-best alternative use of money, time, or resources when making a choice |
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Term
| Production Possibilities Frontier |
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Definition
| Diagram representing the maximum combinations of goods and/or services an economy can produce when all productive resources are fully employed |
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Term
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Definition
| Simplified version of a complex concept or behavior expressed in the form of an equation, graph, or illustration |
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Term
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Definition
| Way of thinking about a choice that compares the cost of an action to its benefits |
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Term
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Definition
| Market economy in which privately owned businesses have the freedom to operate for a profit with limited government intervention |
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