economics
social science dealing with how people satisfy seemingly unlimited and competing needs and wants with the careful use of scarce resources
Microeconomics
branch of economic theory that deals with behavior and decision making by small units such as individuals and firms
Macroeconomics
the branch of economic theory focused on the economy as a whole and decision making by large units, such as governments and unions
Entrepreneurs
risk-taking individuals who introduce new products or services in search of profits; one of the four factors of production
Scarcity
fundamental economic problem facing all societies resulting from a combination of scarce resources and peoples virtually unlimited needs and wants
Productivity
measure of the amount of output produced in a specific time period with a given amount of resources; normally refers to labor, but can apply to all factors of production.
division of labor
division of work into a number of separate tasks to be performed by different workers; same as specialization
service
work or labor performed for someone; economic product that includes haircuts, home repairs, and forms of entertainment
Specialization
assignment of tasks to the workers, factories, regions, or nations that can perform them most effciently
opportunity cost
cost of the next best alternative use of ment, time, or resources, when one choice is made rather than another
capital
tools, equipment, and factories used i the production of goods and services; one of the four factiors of production
utility
ability or capacity of a good or service to be useful and give satisfactionto someone
want
something we would like o have but is not necessary for survival
need
Basic requirement for survival
durable good
a good that lasts for at least three years when used regularly
nondurable goods
item that wears out or lasts for fewer than three years when used regularly
capital good
tool, equipment, or other manufactured good used to produce other goods and services; a factor of production
consumer good
good intended for final use by consumers other than businesses
gross domestic product
monetary value of all final goods, services, and structures produced within a countries national borders during a one-year period
trade offs
alternative that must be given up when one choice is made rather than another