Econ test 1

Economics

The study of how individuals and societies allocate scarce resources, considering production, consumption, and distribution of goods and services.

Utility

A measure of satisfaction or pleasure derived from consuming goods and services, influencing consumer choices and preferences.

Positive economics

Economic statements that are factual

Normative economics

Economic statements that involve value judgments

The economizing problem

refers to the issue of limited resources in relation to unlimited wants, necessitating choices and trade-offs in resource allocation.

Land

Includes all natural resources used in the production process

Labor

Physician and mental actions that people contribute to a production

Capital

All manufacturered aids used in production

Entrepreneural ability

Special Human Resources distinct from labor

Command economy

Economy fully run by government

lassez-faire capitalism

Little to no government intervention in the economy

USA economy

Heavily market with some gov intervention

Market economy

A mix of centralized government and decentralized actions taken by induviduals and firms