Term
|
Definition
| The lands, water, metals, minerals, animals, and other gifts of nature that are available for producing goods and services. |
|
|
Term
|
Definition
| The perpetual state of insufficiency of resources to satisfy people's unlimited wants. |
|
|
Term
|
Definition
| The study of how people work together to transform resources into goods and services to satisfy their most pressing wants, and how they distribute these goods and services among themselves. |
|
|
Term
|
Definition
| The ability of consumers to exercise complete control over what goods and services the economy produces (or doesn't produce) by choosing what goods and services to buy (or not buy). |
|
|
Term
|
Definition
| An abstractin of an economic reality. It can be expressed pictorially, graphically, algebraically, or in words. [image] |
|
|
Term
|
Definition
| The Latin phrase meaning "everything else being equal." |
|
|
Term
|
Definition
| A model of how the economy's resources, money, goods, and services flow between households and firms through resource and product markets. [image] |
|
|
Term
|
Definition
| An economic unit of one or more persons, living under one roof, that has a source of income and uses it in whatever way it deems fit. |
|
|
Term
|
Definition
| An economic unit that produces goods and services in the expectation of selling them to households, other firms, or government. |
|
|
Term
|
Definition
| A theory that a society would be able to set a limit to what they take from resources. |
|
|
Term
|
Definition
| A subarea of economics that analyzes individuals as consumers and producers, and specific firms and industries. It focuses especially on the market behavior of firms and households. |
|
|
Term
|
Definition
| A subarea of economics that analyzes the behavior of the economy as a whole. |
|
|
Term
|
Definition
| A subset of economics that analyzes the way the economy actually operates. |
|
|
Term
|
Definition
| A subset of economics founded on value judgments and leading to assertions of what ought to be. |
|
|
Term
|
Definition
| The use of statistics to quantify and test economic models |
|
|
Term
|
Definition
| Any resource used in a production process. Resources are grouped into labor, land, capital, and entrepreneurship |
|
|
Term
|
Definition
| The physical and intellectual effort of people engaged in producing goods and services |
|
|
Term
|
Definition
| Manufactured goods used to make and market other goods and services. |
|
|
Term
|
Definition
| The investment in workers' health and knowledge, acquired through education, training, and/or experience that enhances their productivity. |
|
|
Term
|
Definition
| The knowledge and skills acquired by labor, principally through education and training. |
|
|
Term
|
Definition
| A person who alone assumes the risks and uncertainties of a business. |
|
|
Term
|
Definition
| The various combinations of goods that can be produced in an economy when it uses its available resources and technology efficiently. |
|
|
Term
|
Definition
| The quantity of other goods that must be given up to obtain a good. |
|
|
Term
|
Definition
| The opportunity cost of producing a good increases as more of the good is produced. The law is based on the fact that not all resources are suited to the production of all goods and that the order of use of a resource in producing a good goes from the most productive resource unit to the least. |
|
|
Term
|
Definition
| An idea that eventually takes the form of new, applied technology. |
|
|
Term
|
Definition
| The less than full utilization of a resource's productive capabilities. |
|
|
Term
|
Definition
| The maximum possible production of goods and services generated by the fullest employment of the economy's resources. |
|
|
Term
|
Definition
| The division of labor into specialized activities that allow individuals to be more productive. |
|
|
Term
|
Definition
| A country's ability to produce a good using fewer resources than the country it trades with. |
|
|
Term
|
Definition
| A country's ability to produce a good at a lower opportunity cost than the country with which it trades. |
|
|
