ECONOMIC TERMS

_______: The social science that deals with how a society allocates its scarce resources among its unlimited wants and needs

Economics

_______: Goes on the axis of a PPG

Goods/Service

_______: The most desirable alternative given up as a result of a decision

Opportunity Cost

_______: The odd way to define a society’s trade-off

Guns & Butter

_______: Central to a society in a Traditional Economy

Family

_______: The concentration of productive efforts on a limited number of activities

Specialization

_______: The doctrine that states the government should generally not intervene in the marketplace

Laissez Faire

_______: The process of choosing which needs to be satisfied and how much of our resources will be used to satisfy them

Allocation

_______: The line connecting all the “normal” points on a PPG

Frontier

_______: All natural resources in an economic sense

Land

_______: The combination of social and individual decision making a society uses to answer the basic economic questions

Economic System

_______: Person or group in the same residence

Household

_______: Those that buy and use goods and services

Consumer

_______: A graph showing the alternative ways an individual or society uses its resources

PPG

_______: Human made/based resources used to produce other goods and services

Capitol

_______: Using more human labor than machines

Labor Intensive

_______: How labor is divided in a Traditional Economy

Gender

_______: Exchange from Firm to Household

Product Market

_______: When a good becomes outdated or non-functional after a short or specified time

Planned Obsolesce

_______: That which we desire but is not essential for survival

Want

_______: The skill in acquiring and managing the factors of production

Entrepreneurship

_______: The skills and knowledge gained by a worker through experience

Human Capitol

_______: Three economic questions answered by the government

Command Economy

_______: Money gained before costs

Revenue

_______: Expectation, good or bad, that encourages a certain behavior

Incentive

_______: When a good is long lasting

Durable

_______: Condition when a good or service is unavailable at the current price

Shortage

_______: Action or activity one person performs for another

Service

_______: Effort a person devotes to a task for which they are paid

Labor

_______: All humans made objects used to create other goods and services

Physical Capitol

_______: All human made objects used to create other goods and services

Physical Capitol

_______: Using more machines than human labor

Capitol Intensive

_______: Three economic questions answered by social customs, habit, and ritual

Traditional Economy

_______: Person or group in the same residence

Household

_______: Exchange from household to firm

Factor Market

_______: One’s personal gain

Self Interest

_______: Struggle among firms for household money

Competition

_______: Physical object a person buys and uses

Good

_______: Those things necessary for survival

Need

_______: Condition when wants and needs are unlimited, but resources need to produce goods and services to meet those wants and needs are limited

Scarcity

_______: Financial gain in a transaction after costs

Profit

_______: Self-regulating nature of the marketplace

Invisible Hand

_______: Motivating force in a Free Market Economy

Sell Interest

_______: Organizations that use resources to produce and sell

Firm