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34 Terms
1
Economics
The study of how individuals, businesses, and organizations use scarce resources to produce and distribute goods and services to meet unlimited needs and wants.
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2
Scarcity
A basic economic problem where resources are limited while human wants are unlimited.
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3
Factors of production
Resources used by businesses to produce goods and services, which include natural resources, labor, capital, and entrepreneurs.
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4
Natural resources
Resources obtained from the earth, such as land, water, and minerals, that are used in the production process.
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5
Labour
The physical and intellectual abilities of people used in the production of goods and services.
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6
Capital
Tools and equipment used in the production process, such as machines and technology.
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7
Entrepreneurs
Individuals who combine resources to create businesses and develop new products or services.
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8
Standard of living
A measure of people's well-being based on the quality and quantity of goods and services consumed.
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9
Microeconomics
The branch of economics that focuses on individual consumers and businesses, examining how they make choices and set prices.
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10
Macroeconomics
The branch of economics that studies the economy as a whole, focusing on aggregate performance indicators such as GDP and unemployment.
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11
Opportunity cost
The value of the next best alternative that must be given up when making a choice.
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12
Economic goods
Goods that are scarce and for which there is a price; they require payment.
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13
Free goods
Resources that are freely available and do not have an associated price, such as air and seawater.
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14
Business cycle
The fluctuations in economic activity characterized by periods of economic expansion and contraction.
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15
Economic activity
Actions that involve the production, distribution, and consumption of goods and services.
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16
Circular flow model
A diagram that illustrates the flow of income and expenditures in an economy, depicting interactions between households, firms, and the government.
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17
Inflation
The rate at which the general level of prices for goods and services rises, eroding purchasing power.
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18
Gross Domestic Product (GDP)
The total value of all finished goods and services produced within a country's borders over a specific time period.
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19
Gross National Income (GNI)
The total income earned by a country's residents, regardless of where that production takes place.
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20
Economic Geography
The study of the location, distribution, and spatial organization of economic activities across the world.
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21
Environment Economics
The branch of economics that analyzes the relationship between economic activity and the environment.
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22
Normative Statements
Statements that are subjective and based on opinions or beliefs, often indicating how things should be.
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23
Positive Statements
Statements that are objective and based on factual information that can be tested or proven.
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24
Trade-offs
The concept of giving up one thing to gain another; often associated with making choices.
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25
Market
A place or arrangement where buyers and sellers come together to exchange goods and services.
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26
Supply and Demand
The relationship between the availability of a good or service and the desire for that good or service.
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27
Consumer Sovereignty
The idea that consumers determine the production of goods and services through their purchasing choices.
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28
Economic Regulation
The use of government authority to control or influence economic activities.
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29
Investment
The act of allocating resources, usually money, in order to generate income or profit.
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30
Barter
A system of exchange where goods and services are traded directly for other goods and services without using money.
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31
Public Goods
Goods that are non-excludable and non-rivalrous, meaning they are available to all without direct payment, such as national defense.
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32
Private Goods
Goods that are produced for profit and can be bought and sold, typically excluding others from use.
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33
Economic Growth
An increase in the production of economic goods and services, compared from one period of time to another.
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34
Developement Economics
The branch of economics that focuses on improving fiscal, economic, and social conditions in low-income countries.
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