government flashcard

Economics

The study of how people seek to satisfy their needs and wands by making choices

Labor

The effort people devote a task for which they are paid

Opportunity cost

The cost of operating a facility, such as a factory or a store

Marginal cost

The extra cost of adding one unit

law of increasing cost

in economic principle, which states that as production shifts from making one good or service to another more resources are needed to increase production of the second good or service

Shortage

A situation of which consumers want more of a good or service than producers are willing to make available

Capital

Any human made resource that is used to produce other goods or service

Goods

The physical objects that someone produces

Entrepreneur

A person who decides how to combine resource resources to create goods and service

Marginal benefit

The extra benefit of adding one unit

Services

The action or activity that one person performs for another

factors of production

The resources that are used to make goods and services

Cost/benefit analysis

A decision making process in which you compare what you will sacrifice and gain by specific action

Production possibilities curve

A graph that shows alternative ways to use a countries, productive resources

Efficiency

The use of resources in such a way as to maximize the output of goods and service services

Scarcity

The principal that limited amounts of goods and services are available to meet unlimited ones

Land

All natural resources used to produce goods and service services

Trade-off

The act of giving up one benefit in order to gain another greater benefit