study of how grave resources are allocated to fulfill infinite wants
scarcity
the study of adding one more unit & deciding what you'd do with it
marginal analysis
whatever must be given up to obtain some item
opportunity cost
4 resources that allow an economy to produce it's output
factors of production
all natural resources used to produce goods and services
land
human effort directed toward producing goods and services
labor
comes from investment in physical & human capital
capital
the process of starting, organizing, managing, and assuming the responsibility for a business
entrepreneurship
a measure of usefulness and pleasure
utility
an economic system directed by government
planned economy
the quantity of a good or service that consumers are willing and able to buy
demand
the ability and willingness to sellquantities of a good at alternative prices in a given time period
supply
products and services that satisfy human wants directly
consumer goods
goods that are used in producing other goods, rather than being bought by consumers
capital goods
goods or services considered to be harmful to people & over-consumed
demerit goods
a good or service society deems everyone is entitled to some minimal quantity of
merit good
large-scale public systems, services & facilities necessary for economic activity
infrastructure
argument that some goods are bought as a display of wealth for ostentatious reasons -
veblen good
...
goods and services
Adam Smith
father of modern economics" wrote The Wealth of Nationsbelieved in free market
Karl Marx
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