Economic Concepts Flashcards

Front

Shortage

Back

The unavailability of a good or service in a given situation.

Front

Scarcity

Back

Limited resources for meeting unlimited wants and needs.

Front

Entrepreneur

Back

An ambitious leader who combines land, labor, and capital to create and market new goods and services.

Front

Human capital

Back

The skills and knowledge gained by a worker through education and experience.

Front

Physical capital

Back

All human-made goods that are used to produce other goods and services.

Front

Opportunity cost

Back

The most desirable alternative given up as the result of a decision.

Front

Trade-off

Back

An alternative that we sacrifice when we make a decision.

Front

Guns or butter

Back

The government choice between making military goods or consumer goods.

Front

Thinking at the margin

Back

Deciding whether to do or use one additional unit of some resource.

Front

Efficiency

Back

Using resources in such a way as to maximize the production of goods and services.