Macroeconomics Vocab Unit 1

Economics

Is the study of scarcity and choice

Trade-off

Whenever you give up something in order to have something else

Resource

Is anything that can be used to pr

Factors of Production

Also called economy’s resources

Land

Refers to all resources that come from nature, such as timber, wind, and petroleum

Labor

Is the effect of workers

Capital

Refers to manufactured goods used to make other goods and services

Entrepreneurship

Describes the efforts of entrepreneurs in organizing resources for production, taking risks to create new enterprises, and innovating to develop new products and production processes

Scarce

When there is not enough available to satisfy all of the various ways a society wants to use it

Opportunity Cost

The value of the next best alternative that you must give up in order to get an item

Microeconomics

Is the study of how individuals, households, and firms make decisions and how those decisions interact

Household