Econ Quiz 1
Terms
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- Natural Resources
- things created by acts of nature and used to produce goods and services
- Physical Capital
- objects made by human beings and used to produce goods and services
- Production Possibilties Curve
- a curve that shows the possible combinations of goods and services available to an economy, given that all prductive resources are fully employed and efficiently utilized
- Scarcity
- A situation in which resources are limited and can be used in different ways, so we must sacrifice one thing for another
- Variable
- a measure of something that can take on different values
- Ceteris Paribus
- these Latin words mean "other things being equal to what they were before" or "other variables being fixed"
- Economics
- study of the choices made by people who are faced with scarcity
- Entrepreneurship
- effort used to coordinate the production and sale of goods and services
- Factors of Production
- the resources used to produce goods and services
- Human Capital
- The knowledge and skills acquired by a worked through education and experience and used to proudce goods and services
- Labor
- Human effort used to proudce goods and services including both physical and mental effort
- Macroeconomics
- the study of the nation's economy as a whole
- Market
- An arrangement that allows buyers and sellers to exchange things: A buyer excahnges money for a product, while a seller excahnges a product for money
- Microeconomics
- the study of the choices made by consumers, firms, and government and how tehse decisions affect the marketfor a particular good or service