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Flashcards in Chapter 1 Deck (23)
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1
Q

want

A

a thing that we desire to have

2
Q

resource

A

anything that can be used to produce goods or services (trees, employees, labor, etc)

3
Q

scarcity

A

condition in which wants are greater than resources available to satisfy them

4
Q

opportunity cost

A

the most highly valued opportunity or alternative forfeited when a choice is made.

5
Q

trade-off

A

a situation in which more of one thing necessarily means less of something else

6
Q

production possiblities frontier

A

graphic representation of all possible combinations of two goods that an economy can produce

7
Q

rationing device

A

means for deciding who gets what portion of the available resources and goods

8
Q

economics

A

science that studied the choices of people trying to satisfy their wants in a world of scarcity,

9
Q

marginal

A

additional

10
Q

incentive

A

something that encourages or motivates a person to take action

11
Q

microeconomics

A

branch of economics that deals with human behavior and choices as they relate to relatively small units—an individual, a business firm, or a single market

12
Q

macroeconomics

A

the branch of economics that deals with human behavior and choices as they relate to the entire economy

13
Q

theory

A

an explanation of how something works, designed to answer a question for which there is no obvious answer

14
Q

tangible

A

able to be felt by touch

15
Q

intangible

A

not able to be felt by touch

16
Q

goods

A

anything that satisfies a person’s wants or brings satisfaction; also, tangible products

17
Q

utility

A

quality of bringing satisfaction or happiness

18
Q

disutility

A

quality of bringing dissatisfaction or unhappiness

19
Q

services

A

tasks that people pay others to perform for them

20
Q

land

A

all the natural resources found in nature.

21
Q

labor

A

physical and mental talents that people contribute to the production of goods and services

22
Q

capital

A

produced goods that can be used as resources for further production

23
Q

entrepeneurship

A

special talent that some people have for searching out and taking advantage of new business opportunities and for developing new products and new ways of doing things.