economics test – Flashcards
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economics
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the study of how society chooses to use scarce resources to satisfy its unlimited wants and needs
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microeconomics
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the study of a single factor of an economy such as as individuals household, businesses, and industries rather than an economy as a whole
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macroeconomics
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the study of an entire economy or one of its principal sectors
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consumer
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one who buys goods or services for personal use rather then for resale or use in production or manufacturing
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producer
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a person, group, or business that makes goods or provides services to satisfy the consumers needs and wants
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goods
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an object or material that can be purchased to satisfy human wants and needs
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service
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any action or activity that is performed for a fee
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resource
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anything used to produce goods or service
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allocate
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to distribute scarce resources such as money, land, equitmant, or labor in order to satisfy the greatest number of needs and wants
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division of labor
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the division of a complex procedure into small task, enabling working to increase output through specialization
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opportunity
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the value lost by rejecting one use of resources in favor of another
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factor of production
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a resource used to produce goods and services
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natural resource
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in economics any material provided by the nature that can be used to produce goods or provide services
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human resource
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any human activity mental or physical used in the production process
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capital good
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a building, structure machines, or tool that is used to produce goods or services
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entrepreneurship
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the organizational abilities and risk taking involved in starting a new business or introducing a new product to consumers
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entrepreneur
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someone who undertakes and develops a new business enter price or develops a new product risking failure or loss for the possibility of financial gain
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scarcity
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the fundamental condition of economics that results from the combination of limited resources and unlimited wants
