Intro to Econ: Vocab

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

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goods and services

Adam Smith

father of modern economics" wrote The Wealth of Nationsbelieved in free market

Karl Marx

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