economics aug 24

economic modles

is a simplifed representation of econmic force

produce possibilites curve

is a graph used by economists to show the impact of scarcity on an economy

efficiency

involves producing the maxiumum amount of good and services possible

underutillization

producing fewer goods and services than possible

law od increacing opportunity cost

states that as production switches from one product to another,increacing amounts of resoures are needed to increase the production of the secound product.

incentves

methodes used to encourage people to take certain actions

utility

is a benefit or satisfaction recevied from using a good or service

economize

to make decisions according to the west combination of costs and benefits.

trade off

is a alternative people give up when they make choices

opportunity cost

is the value of something that is given up to get something else that is wanted

cost-benefit analysis

is an aproach that whighs the benefit of an action against its cost

marginal cost

is the additional cost of using one more unit

marginal benefit

is the additional statisfaction from using one more unit of product

statistics

information in numerical form

microeconomics

is the study of individuals,families,and businsses in an economy

macroeconomics

is the study of the economy as a whole and is concerned with large-scale economic activity

positive economics

studies economics behavior as it is.

normative ecomics

involves judgements of what economiccs behavior ought to be

wants

are desires that can be satsfied by consuming a good or service

needs

are things that are necessary for survival

scarcity

exists when there are not enough resources to satisfy human wants

economics

is the study of how individuals and societies satisfy their unlimited wants with limited resources

goods

are objects such as food,clothing and furniture,that can be bought

services

are work that one person does for another

consumer

is a person who buys or uses goods or services

producer

is a maker of goods or a producer of services

factors o production

are the resources needed to produce goods and services

land

refers to all natural resources used to produce goods and services

labor

is all human effort used to produce goods and services

capital

is all the resources made and used by people to produce goods and services

entre preneurship

involves the vision,skills and risk taking needed to create and run businesses.