Term
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Definition
| a situation where there is not enough to satisfy everybody's wants |
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Term
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Definition
| unlimited wants exceed scarce resources |
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Term
| factors of production (definition) |
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Definition
| the resources of inputs into a production process from which an output of goods and services emerges |
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Term
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Definition
| land, labor, capital, and entrepreneurship |
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Term
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Definition
| land itself, rives, oceans, animals, plants, ect |
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Term
| what is included in labor? |
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Definition
| covers all human effort (mental and physical) |
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Term
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Definition
| anything used to make something else (machines, products, roads, ect) |
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Term
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Definition
| final product, bought by consumers |
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Term
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Definition
| education, training and expirience that workers have gained. The more they have, the more they are capable of production |
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Term
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Definition
the inventors and creators of new products
(give us new products and better products) |
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Term
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Definition
the alternative to a decision, often a purchase.
EX: you have the choice of buying a computer or an ipod. you buy the ipod. the computer is the opportunity cost. |
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Term
| what role does the consumer have in the economy? |
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Definition
| money is scarce so we have to chose what we want to buy. producers than use the information to determine what to produce and how much to produce. so we decide WHAT is produced and HOW MUCH is produced |
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Term
| Besides what the consumers buy, how do producers decide what to make? |
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Definition
| they produce what gives them maximum profit |
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Term
| what is the job of the government when it comes to opportunity costs? |
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Definition
| they are supposed to spread tax revenues |
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Term
| what does the Production Possibility Curve show? |
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Definition
it shows the maximum production possible
and the alternative ways to use an economy's resources |
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Term
| In what situation (s) would the PPC increase? |
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Definition
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Term
| What happens when a country is producing inside the PPC? |
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Definition
| the country isnt using all of its resources |
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Term
| What happens when a country is producing outside of the PPC? |
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Definition
| they dont have enough resources to produce what they are producing. |
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Term
| Over time, resources available to an economy, may increase ____________. |
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Definition
economic growth.
thats when the PPC shifts outward (in order for this to happen, you need more/better resources |
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Term
| What are the 3 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
| structure that guides production, allocation, and consumption of goods and services in an economy |
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Term
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Definition
| an area in which people make or produce goods and services |
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Term
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Definition
| made up of all the producers who make and sell particular goods and all consumers willing an able to buy it |
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Term
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Definition
| an economic system that relies on habit, custom, or ritual to decide the 3 key economic questions |
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Term
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Definition
| the people (consumers and producers) answer the 3 fundamental questions |
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Term
| Communism (Command Economy) |
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Definition
| the government answers the 3 fundamental questions |
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Term
| mixed economy (socialism) |
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Definition
| an economic system where the government and the people are involved in answering the 3 qs |
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Term
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Definition
| He was the first guy to talk about the government. He created the assumption that people always act in their own rational self interest. |
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Term
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Definition
| created capitalism and the idea of "invisible hand" |
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Term
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Definition
| he said that countries should specialize in one thing (what they are good at) and then trade with other countries. |
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Term
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Definition
| large-scale deficit spending by the government is needed to fix a recession |
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Term
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Definition
| Defended capitalism, wanted little government involvement |
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Term
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Definition
| friends with Hayek; defended capitalism |
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