Term
|
Definition
| Physical articles that have been produced for sale or use. Three examples are food, clothing, and cars. |
|
|
Term
|
Definition
| Work done by someone else for which a consumer, business, or government is wiling to pay. Three examples are teaching, gardening, and childcare. |
|
|
Term
|
Definition
| Resources used to produce goods and services. Economists define these resources as land, labor, and capital. |
|
|
Term
|
Definition
| The willingness and ability to take the risks involved in starting and managing a business. |
|
|
Term
|
Definition
| The tools, machines, and buildings used to produce goods and services. |
|
|
Term
|
Definition
| A measure of the efficiency with which goods and services are produced. Productivity is often stated as the quantity produced per person per hour. |
|
|
Term
|
Definition
| The value of the next best alternative that is given up when making a choice. This is the measure of what you must give up to get what you most want. |
|
|
Term
production possibilities frontier (PPF)
|
|
Definition
| A simple model of an economy that shows all the combinations of two goods that can be produced with the resources and technology currently available. |
|
|
Term
|
Definition
| goods and services produced using land, labor, and capital |
|
|
Term
|
Definition
| land + labor + capital= goods and services |
|
|
Term
|
Definition
| individuals assemble and create new goods and services using land, labor, and capital |
|
|
Term
|
Definition
| "Gifts of nature," including air, soil, minerals, water, forests, plants, animals, birds, and fish. They also include solar energy, wind and geothermal energy, and electromagnetic spectrum. |
|
|
Term
|
Definition
| natural resources such as sunlight and wind that are widely available and in no danger of being used up |
|
|
Term
|
Definition
| Resources such as forests, fresh water, and fish that can be replaced as they are used. Some metals can be recycled to use again. |
|
|
Term
|
Definition
| fossil fuels, such as oil, coal, and natural gas--once they are used, they are gone forever |
|
|
Term
|
Definition
| time and effort people devote to producing goods and services in exchange for wages |
|
|
Term
|
Definition
| knowledge and skill that people gain from education, on the job training, and other experiences--it's importance is almost impossible to overstate |
|
|
Term
|
Definition
| relationship between or connection between people, ideas, places or items |
|
|
Term
|
Definition
| money that people can invest in stocks, bonds, real estate, or businesses to produce future wealth |
|
|
Term
physical capital or capital goods
|
|
Definition
| the tools, machines and buildings used to produce goods and services |
|
|
Term
|
Definition
| the statisfaction or pleasure one gains from consuming a product or service or from taking an action |
|
|
Term
|
Definition
| extra satisfaction or pleasure you will get from an increase of one additional unit of good or service |
|
|
Term
|
Definition
| the more we get of something, the marginal utility decreases |
|
|
Term
| law of diminishing marginal utility |
|
Definition
| as the quantity of a good consumed increased, the marginal utility of each additional unit decreases |
|
|
Term
production possibilities curve
|
|
Definition
| the sloping line on the PPF (production possibilities frontier) graph that represents the best the economy can do with its current factors |
|
|
Term
|
Definition
| the result of using resources in a way that produces the maximum amount of goods and services |
|
|
