ECON FLASHCARDS

scarcity

the condition that results from society not having enough resources to produce all the things people would like to have

Economics

the study of how people try to satisfy seemingly unlimited and competing needs and wants through the careful use of relatively scarce resources

need

a basic requirement for survival (food, water, clothing, shelter)

want

something we would like to have but is not necessary for survival

good

useful or tangible item (car, books, etc)

durable good

one that lets for three or more years when used on a regular basis

non durable goods

an item that lasts fewer than three years when used on a regular basis

consumer good

goods such as shoes, shirts, or automobiles intended for final use by consumers or individuals

capital good

a tool or good such as machinery or equipment that is used by businesses to produce other products

value

a worth that can be expressed in dollars or cents

GDP (gross domestic product)

Monetary value of all final goods, services, and structures produced within a countries borders in a 12 month period. It is the most comprehensive measure of a countries total input.

opportunity cost

value of the next best alternative given up.

human capital

the sum of peoples skills, abilities, health, knowledge, and motivation

productivity

a measure of the amount of goods and services produced within a given amount of resources in a specific period of time.

economic model

a simplified equation, graph, or figure that shows how something works.