Flashcards
Economics Flashcards
Cards in this deck (25)
- 1EconomicsThe science that deals with the production, distribution, and consumption of commodities
- 2Wants vs. NeedsWants are something that you don't HAVE to have, but you would like to have. Needs are things that are necessary for your life.
- 3ScarcityBeing in short supply
- 4Factors of ProductionThe inputs that are used in the production of goods or services in the attempt to make an economic profit
- 5LandResources of production that the Earth provides
- 6LaborThe parts of production that require human effort to get the production to a specific point
- 7CapitalAny man-made thing that participates and has a part in production
- 8EntrepreneurshipThe part of production when a product manager (goods or services) sells and makes a profit off of his product
- 9EntrepreneurA person who provides goods or services on their own and makes a profit from it
- 10Trade-OffInvolves a sacrifice that must be made to get a certain product or experience
- 11Opportunity Costthe cost of an alternative that must be forgone in order to pursue a certain action
- 12Gross Domestic Producta broad measurement of a nation's overall economic activity
- 13Circular Flow Modeleconomic model depicting how money flows through the economy
- 14Factor Marketmarkets where services of the factors of production (not the actual factors of production) are bought and sold
- 15Product Marketsthe marketplace in which final goods or services are offered for purchase by consumers, businesses, and the public sector.
- 16Specializationwhen a nation or individual concentrates its productive efforts on producing a limited variety of goods
- 17Division of LaborDividing a job into many specialized parts, with a single worker or a few workers assigned to each part
- 18Adam Smitha Scottish moral philosopher, pioneer of political economy, and a key figure in the Scottish Enlightenment
- 19CapitalismAn economic and political system characterized by a free market for goods and services and private control of production and consumption
- 20Free Enterprise Systeman economic system where few restrictions are placed on business activities and ownership
- 21Consumer Sovereigntythe situation in an economy where the desires and needs of consumers control the output of producers
- 22Private Ownershipa legal designation for the ownership of property by non-governmental legal entities
- 23CompetitionWhen two or more people are competing for something (in this case, two entrepreneurs fighting for the bigger profit)
- 24Profit MotiveThe intent to achieve monetary gain in a transaction or material endeavor
- 25Laissez-faire“Let (people) do (as they choose).”