midterm economics study guide

Front

Define the term listed below:
Tangible

Back

Physical assets or objects that can be touched or measured, such as machinery or buildings.

Front

Define the term listed below:
Capital

Back

Resources used to produce goods and services, including financial, physical, and human capital

Front

Define the term listed below:
Scarcity

Back

The economic principle that resources are limited while human wants are unlimited

Front

Define the term listed below:
Microeconomics

Back

The branch of economics that studies individual behavior and decision-making in small units, such as households and businesses

Front

Define the term listed below:
Theory

Back

A set of principles or ideas used to explain and predict economic behavior

Front

Define the term listed below:
Opportunity Cost

Back

The value of the next best alternative that is foregone when making a choice.

Front

Define the term listed below:
Resource

Back

Inputs used to produce goods and services, such as land, labor, and capital.

Front

Define the term listed below:
Rationing Device

Back

A mechanism for determining how resources or goods are distributed, often based on price or priority.

Front

Define the term listed below:
Trade-Off

Back

A situation where choosing one option requires giving up another.

Front

Define the term listed below:
Incentive

Back

A factor that motivates or influences behavior and decision-making.