Intro to Econ: Vocab

study of how grave resources are allocated to fulfill infinite wants


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


human effort directed toward producing goods and services


comes from investment in physical & human capital


the process of starting, organizing, managing, and assuming the responsibility for a business


a measure of usefulness and pleasure


an economic system directed by government

planned economy

the quantity of a good or service that consumers are willing and able to buy


the ability and willingness to sellquantities of a good at alternative prices in a given time period


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


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