Economics Unit 1 Vocabulary

A complete set of vocabulary flashcards derived from the Economics Unit 1 lecture notes, covering core concepts of scarcity, goods, factors of production, and economic measurements.

Scarcity

We have unlimited wants but limited resources available. A condition in which society does not contain enough resources to produce all of people’s wants.

Economics

Social Science dealing with how people satisfy seemingly unlimited and competing wants with the careful use of scarce resources (study of scarcity).

Need

A basic requirement for survival, which includes food, clothing, shelter, etc.

Want

A desire that can be fulfilled by consuming goods/services.

Durable good

Goods that last for at least three years when used on a daily basis

Nondurable good

Products that are consumed or are only usable for a short period of time before they become useless through wear.

Consumer good

A good intended for final use is by the consumer, rather than businesses; such as a television

Capital good

Tools, equipment, or other manufactured goods used to produce other goods and services more effectively and efficiently than handmade products.

Service

Work or labour performed for someone (businesses, companies): an economic product that includes haircuts, home repairs, forms of entertainment, restaurants

Paradox of value

A state where non-essentials have a higher value while some essentials tend to have a lower value

Utility

Capacity to be useful and provide value

Wealth

Sum of tangible economic goods that are scarce, useful, and transferable from one person to another.

Gross Domestic Product

Dollar value of all final goods, services, and structures produced within a country’s borders in a s $12$ - month period.

Land

The factor of production that includes natural resources not created by humans.

Labor

Abilities & skills that are used for producing goods and services

Capital

Factors of production that include tools, equipment, machinery, and factories used in the production of goods and services.

Entrepreneurs

Risk - taking individual in search of profits; one of the four factors of production

Production Possibilities Curve

a diagram that represents various combinations of goods and services an economy can produce when all its resources are in use.

Opportunity cost

Cost of choosing the next best alternative use of money, time, or resources when one choice is made rather than another. Benefits that are missed when choosing an alternative over another

Consumerism

A social movement aimed at promoting the interests of consumers.

Goods

Tangible economic product that is utilized to satisfy wants and needs