Economics Concepts

Front

Scarcity

Back

When there are not enough resources to satisfy human wants.

Front

Principles of Scarcity

Back

1. Everyone Has Wants 2. Scarcity Affects Everyone

Front

Factors of Production

Back

Economic resources needed to produce goods and services.

Front

Four Factors of Production

Back

1. Land 2. Labor 3. Capital 4. Entrepreneurship

Front

Incentives

Back

Benefits offered to encourage people to take certain actions.

Front

Utility

Back

Benefit or satisfaction gained from the use of a good or service.

Front

Economize

Back

Make decisions according to what you believe is the best combination of costs and benefits.

Front

Factors of Economizing

Back

1. Motivations for Choice 2. “No Free Lunch”

Front

Tradeoff

Back

Alternative choice (sacrifice) people give up when they make choices.

Front

Opportunity Cost

Back

Value of something that is given up to get something else you want.