Econ Semester 1 Vocab

Economics !

A social science that tries to solve the problem of society's unlimited wants, but limited resources.

Opportunity Cost !

The next best alternative you pass up on when making a choice.

Trade Off !

All the alternatives you pass up on when making a choice.

Positive Statement !

An economic fact.

Normative Statement !

An economic opinion.

Marginal Analysis !

Making a decision or action based on the additional benefit it gives you.

Technology !

New advancements in society that help allow people, businesses, and governments to be more productive.

Land !

Resources that people, businesses, and governments use from the earth.

Capital !

In economics, this term refers to the equipment, buildings, and machinery a business uses.

Entrepreneurial Ability !

Opportunities for individuals to innovate and start new businesses or products that benefit society.

Command Economy !

Economies where governments own the means of production and have a lot of control over price and quantity; resources are allocated by a centrally planned government; communism.

Free Market Economy !

Economies where people and businesses own the means of production and have a lot of control over price and quantity; resources are allocated based on a price system; capitalism.

Specialization !

When one country decides to devote all of its resources towards the production of one good.

Export !

When a country sends it's goods and services abroad to other countries.

Import !

When a country receives goods and services from other countries.

Labor !

The number of workers hired within a business or company.