ECON CHAP 1 KEY TERMS

Scarcity

• monetary value of all final goods, services, and structures produced within a country’s national borders during one year period 

• apparent contradiction between the high value of nonessential item and the low of an essential value

•  condition that results from society not having enough resources to produce all the things people would like to have

• monetary value of all final goods, services, and structures produced within a country’s national borders during one year period 

Economics

•  measure of the amount of output produced in specific time period with a given amount of resources

• : study of how people try to satisfy seemingly unlimited and competing needs and wants through the careful use of relatively scarce resources 

•  measure of the amount of output produced in specific time period with a given amount of resources

• sum of people's skills, abilities, heath and motivation

Need

•  basic requirement for survival, such as food, clothing and shelter

• something we would like to have but us not necessary for survival

•  tangible economic product that is useful, transferable to others, and used to satisfy wants and needs

• monetary worth of a good or service as determined by the market

Want

• natural resources or “gifts of nature” not created by human effort

• : ability or capacity of a good or service t be useful and give satisfaction to someone 

  
  

• increase in a nation's total output of goods and services over time

• something we would like to have but us not necessary for survival

  
  

Transferable

• alternative that must be given up when one choice is made rather than another

• capable of being passed from one person to another

• division of work into a number of separate tasks to be performed by different workers 

• measure of the amount of output produced in specific time period with a given amount of resources

Good

• monetary value of all final goods, services, and structures produced within a country’s national borders during one year period 

• tools, equipment and factories used in the production of goods and services

•  tangible economic product that is useful, transferable to others, and used to satisfy wants and needs

•  cost of the next best alternative use of money, time or resources when one choice is made rather than another

Durable Good

• last 3 years or more when used on regular basis

• good intended for final use by consumers other than businesses capital good

• last for fewer than 3 years when used on regular basis

•  not physically 

Nondurable Good

• a social movement that was aimed at promoting the interest of consumers 

• last 3 years or more when used on regular basis

• last for fewer than 3 years when used on regular basis

• basic requirement for survival, such as food, clothing and shelter

Consumer Good

• sum of a tangible economic goods that are scarce, useful and transferable from one person to another 

• basic requirement for survival, such as food, clothing and shelter

• good intended for final use by consumers other than businesses capital good

• covering many or all areas

Service

• to change the nature of something

•  sum of people's skills, abilities, heath and motivation

• work or labor performed for someone

• process or means by which something can be accomplished