Economics Fundamentals Vocabulary

Vocabulary flashcards generated from the economics lecture notes covering core principles, factors of production, and key terms.

Economics

the study of the decisions involved in producing, distributing and consuming goods and services.

Opportunity Cost

the value of a second choice, given up when a first choice is taken.

Labor

“human effort” applied to resources in order to produce.

Capital

tools” used by labor in the production process.

Entrepreneurship

the organization and risk necessary to bring production about (primary/foundational).

Scarcity

the condition that exists in society where there are not enough resources to satisfy people’s wants/needs.

Factors of Production

the four general classifications of things that can be combined in order to produce.

Services

Intangible (can’t physically examine) things that people consume here and abroad. They satisfy human wants and needs.

Trade-Offs

one for one comparable value exchange.

Natural Resources

things that are in their “natural state”. These things “of nature” have not been altered or changed by human hands.

Goods

Tangible (physical/touchable) objects that people consume here and abroad. They satisfy human wants/needs.

TINSTAAFL

there is no such thing as a free lunch.