Studied by 7 people
Social Science
Uses scientific methods to explain behavior and relationships in society.
Hypothesis
Tentative description of observed phenomena.
Harder Theories
Theories from natural science that withstand tests.
Softer Theories
Social science theories allowing exceptions to central predictions.
Consumption
Process of satisfying consumer needs and wants.
Economic Welfare/Utility
Happiness from consumption or quality of life factors.
Goods
Tangible products like food and cars.
Services
Intangible products like education and healthcare.
Needs
Minimum requirements for human survival.
Wants
Desires for goods and services, infinite in nature.
Economic Activity
Production of goods and services to satisfy needs and wants.
Factors of Production
Land, labor, capital, and entrepreneurship used in production.
Environmental Resources
Natural and abstract resources within the environment.
Factor Income
Payment to owners for use of production factors.
Scarce Resources
Limited production inputs requiring choices in use.
Inputs
Factors of production or raw materials used in production.
Production
Transformation of resources into final consumer form.
Output
Combined goods and services produced.
Economic Problem
Allocation of resources due to infinite wants and scarce resources.
Choice
Economic decisions involving alternative uses of scarce resources.
Trade-Off
Choosing between conflicting objectives due to limited resources.
Economic Agents
Decision makers affecting resource allocation.
Economy
System solving economic problems of production, allocation, and consumption.
Free-Market-Economy
System relying on market forces for resource allocation.
Opportunity Cost
Benefit forgone of the next best alternative.
Economic Goods
Goods with opportunity cost due to scarcity.
Free Goods
Unlimited supply goods with no opportunity cost.
Production Possibility Frontiers (PPF)
Curve showing maximum potential output given fixed resources and technology.
Capital Goods
Assets used to produce other goods, not for consumption.
Consumer Goods
Goods produced for consumption.
Productive Efficiency
Full employment of resources producing at lowest costs.
Allocative Efficiency
Best combination of goods and services considering consumer preferences.
Asymmetric Growth
Economic growth due to increased productivity in one sector.
Normative Statements
Opinions requiring value judgments, not scientifically testable.
Positive Statements
Objective statements of fact scientifically testable.
Note 
Flashcard (44)