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8 Cards in this Set
- Front
- Back
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Factors of production |
•LAND-limited resources •CAPITAL-$ and the material used to produce goods •LABOR-people w/ abilities & skills •Entrepreneurs-starts businesses,innovation,bring new products to the market place |
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GDP |
Market value of all final goods+services produced w/in a country in a given period of time |
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Opportunity Cost |
Is the next best alternative use of money, time, or resources when one choice is made rather than another. It is the 2nd best choice |
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Importance of scarcity |
It is the fundamental economic problem. All resources are scarce in that they require effort to make them useful to people. |
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Differences b/t goods+services |
Goods: economically useful or satisfy economic wants.(tangible)There are consumer and capital goods. Services: work that is performed for someone(ex-salon,barber,tax services...) |
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Consumer vs. capital goods |
Consumer: car, washing machine
Capital: factory robot |
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Scope of Economics |
How we study economic activity. -GDP -unemployment rate -govt spending -tax rates |
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Economics |
Looks at the way society uses limited resources to make goods and services & distributes these goods and services to a human population with unlimited wants |
