Vocabulary List 1
Economics / Mr. Henry
Vocabulary List 1
Economics / Mr. Henry
scarcity- condition that results from society not
having enough resources to produce all the
things people would like to have
scarcity- condition that results from society not
having enough resources to produce all the
things people would like to have
economics- study of how people try to satisfy
seemingly unlimited and competing wants
through the careful use of relatively scarce
resources
economics- study of how people try to satisfy
seemingly unlimited and competing wants
through the careful use of relatively scarce
resources
factors of production- resources required to
produce things which are land, capital, labor,
and entrepreneurs
factors of production- resources required to
produce things which are land, capital, labor,
and entrepreneurs
gross domestic product- dollar value of all
final goods, services, and structures produced
within a country’s borders during a one-year
period
gross domestic product- dollar value of all
final goods, services, and structures produced
within a country’s borders during a one-year
period
consumer good- good intended for final use by
consumers rather than businesses
consumer good- good intended for final use by
consumers rather than businesses
paradox of value- apparent contradiction
between the high monetary value of a
nonessential item and the low value of an
essential item
paradox of value- apparent contradiction
between the high monetary value of a
nonessential item and the low value of an
essential item
human capital- sum of people’s skills, abilities,
health, knowledge and motivation
human capital- sum of people’s skills, abilities,
health, knowledge and motivation
specialization- assignment of tasks to the
workers, factories, regions, or nations that can
perform them more efficiently
specialization- assignment of tasks to the
workers, factories, regions, or nations that can
perform them more efficiently
economic interdependence- mutual
dependency of one person’s, firms, or region’s
economic activities on another’s
economic interdependence- mutual
dependency of one person’s, firms, or region’s
economic activities on another’s
trade-off- alternative that is available whenever
a choice is to be made
trade-off- alternative that is available whenever
a choice is to be made
opportunity cost- cost of the next-best
alternative use of money, time, or resources
when making a choice
opportunity cost- cost of the next-best
alternative use of money, time, or resources
when making a choice
economic model- simplified version of a
complex concept or behavior
economic model- simplified version of a
complex concept or behavior
cost-benefit analysis- way of thinking about a
choice that compares the cost of an action to its
benefits
cost-benefit analysis- way of thinking about a
choice that compares the cost of an action to its
benefits
free enterprise economy- characterized by the
private ownership of capital goods and
investments made by private decision
free enterprise economy- characterized by the
private ownership of capital goods and
investments made by private decision