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37 Cards in this Set
- Front
- Back
An object that can be bought and used to meet the needs & wants of consumers.
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good
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Says that our goods and services are limited
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scarcity
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Man-made objects that are used to make other goods and services
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physical capital
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A resource that can be naturally replenished
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renewable resource
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A fixed income paid on a monthly basis.
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salary
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An alternative that we sacrifice when we make a decision.
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trade-off
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The thing that we lose out on when we make a decision.
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opportunity cost
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That which is necessary for survival.
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need
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Natural resources used to make goods and services
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land
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The person who combines land, labor, and capital to make a good.
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Entrepreneur
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A person who works on an assembly line describes this factor of production.
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labor
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The degree to which resources are being used efficiently.
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productivity
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Knowledge and skill gained on the job that is used to make goods and services.
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human capital
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A reward that is offered to persuade people to take certain economic actions.
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incentive
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A person who buys goods and services.
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consumer
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Using fewer resources than an economy is capable of using
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underutilization
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A cost that remains the same no matter how many goods are produced
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fixed cost
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the payment for the service of one unit of labor
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wage
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fixed costs plus variable costs
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total cost
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A person who makes goods and services
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producer
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The extra cost of producing one more unit of a good
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marginal cost
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Actions one person performs for another
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services
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improving a good or service
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innovation
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the amount of money left over after all the costs of production have been paid
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profit
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an economic system in which private citizens own and use the factors of production in order to seek a profit
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capitalism
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machines control production
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automation
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the breaking down of a job into smaller, separate tasks which are performed by different workers
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division of labor
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father of economics
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Adam Smith
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takes place when people/businesses/regions/countries concentrate on goods that they can produce better than anyone else
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specialization
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a level of production in which the marginal product of labor decreases as the number of workers increases
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law of diminishing marginal returns
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machines perform physical tasks
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robotics
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working class employee who performs manual or unskilled labor
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blue collar
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perform taks that require less physical labor/skilled workers
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white collar
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the struggle between buyers and sellers to get the best products at the lowest prices, keeps cost of production low and quality high
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competition
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any human made resource that is used to produce other goods and services
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capital
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costs or expenses that change with the number of products produced
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variable costs
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3 basic economic questions
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what to produce, how to produce, for whom to produce
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