JA Economics Chapter 1 Review – Flashcards
Unlock all answers in this set
Unlock answersquestion
Economics
answer
Social science that studies how people, act alone and in groups, decide to use scarce resources to satisfy their wants.
question
Satisfaction Chain
answer
Human wants Land,Labor & Capital Into production Resulting in goods and services Which go through distribution Goods or services made available for consumption Resulting in want-satisfaction
question
Production
answer
Process with economic resources that results in a good or service that is available for sale.
question
Distribution
answer
Process of getting a product or service to consumers.
question
Consumption
answer
Using a product or service.
question
Land
answer
Natural resources ex: Soil, minerals, timber, and fresh water
question
Labor
answer
Physical and mental efforts people use to create goods and services.
question
Capital Resources
answer
Resources that are used to build goods or services. Ex: Buildings, tools, and machines
question
Factors of production
answer
Land,labor, and capital resources.
question
Entrepreneurship
answer
The imagination, innovative thinking, and management skills needed to start and operate a business.
question
Scarcity
answer
There is more demand then available resources .
question
Opportunity Cost
answer
Highest valued alternative given up as a result of making a choice.
question
Incentives
answer
Positive rewards for making some kind of choice or behaving in a certain way.
question
Disincentives
answer
A negative or withdrawn reward. ( Fines or Punishments )
question
Trade
answer
Exchanging something for something else.
question
Marginal
answer
Extra or additional costs or benefits of a decision.
question
Profit
answer
Positive difference between total sales and total costs.
question
Market Economy
answer
An economy that relies on voluntary trade as the primary means of organizing and coordinating production.
question
Market
answer
Arrangement that allows buyers and sellers to make exchanges.
question
Macroeconomics
answer
Study of economy as a whole.
question
Microeconomics
answer
Study of individual consumers and businesses.
