+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
Scarcity
|
The condition in which human wants are forever greater than the available supply of time, goods, and resources.
|
|
Resources
|
The basic categories of inputs used to produce goods and services. Also called factors of production. Economists divide resources into three categories: land, labor, and capital.
|
|
Land
|
A shorthand expression for any natural resource provided by nature.
|
|
Labor
|
The mental and physical capacity of workers to produce goods and services.
|
|
Entrepreneurship
|
The creative ability of individuals to seek profits by taking risks and combining resources to produce innovative products.
|
|
Capital
|
The physical plants, machinery, and equipment used to produce other goods. _______ goods are human-made goods that do not directly satisfy human wants.
|
|
Economics
|
The study of how society chooses to allocate its scarce resources to the production of goods and services in order to satisfy unlimited wants.
|
|
Macroeconomics
|
The branch of economics that studies decision making for the economy as a whole.
|
|
Microeconomics
|
The branch of economics that studies decision making by a single individual, household, firm, industry, or level of government.
|
|
Model
|
A simplified description of reality used to understand and predict the relationship between variables.
|
|
Ceteris paribus
|
A Latin phrase that means while certain variables change, "all other things remain unchanged."
|
|
Positive economics
|
An analysis limited to statements that are verifiable.
|
|
Normative economics
|
An analysis based on value judgment.
|
