Econ Unit 1 Flashcards

Front

Scarcity

Back

The fundamental economic problem where unlimited wants exceed the limited resources available to satisfy them.

Front

Economics

Back

The study of how people try to satisfy their wants through the careful use of scarce resources.

Front

What are the four factors of production?

Back

Land, Labor, Capital, and Entrepreneurship.

Front

Land (Factor of Production)

Back

Natural resources or "gifts of nature" not created by human effort.

Front

Labor (Factor of Production)

Back

People with all their efforts, abilities, and skills.

Front

Capital (Factor of Production)

Back

The tools, equipment, machinery, and factories used in the production of goods and services.

Front

Entrepreneurship (Factor of Production)

Back

Risk-takers who combine the other factors of production in search of profit.

Front

Trade-Off

Back

An alternative that we sacrifice when we make a decision.

Front

Opportunity Cost

Back

The cost of the next-best alternative use of money, time, or resources when one choice is made rather than another.

Front

Production Possibilities Curve (PPC)

Back

A diagram representing various combinations of goods and services an economy can produce when all resources are fully and efficiently employed.