Vocab - Scarcity The situation in which the limited resources available are insufficient to satisfy unlimited wants Factors of production All

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Scarcity The situation in which the limited resources available are insufficient to satisfy unlimited wants. Factors of production: All resources used in production – Land (natural resource used in production), Capital (man-made resources used in production), Management (human efforts which organize all resources, make decisions and bear risks), Labor (human efforts (both physical and mental) contributed in production. Opportunity Cost: The next best alternative foregone when an economic decision is made. Production possibility curves: Curves used to shows the maximum combination of goods and services produced by an economy in a given time period, if all resources are utilized and the state of technology being fixed. Planned economies: An economy in which decisions as to what to produce, how to produce, and who to produce for, are made by the government. Free market economies: An economy in which prices are used to ration goods and services. Demand: The quantity of a good or service that consumers are willing and able to purchase at a given price in a given time period. Law of Demand: “as the price of a product falls, the quantity demanded of the product will usually increase, ceteris paribus.” Supply: The quantity of a good or service that producers are willing and able to produce at a given price in a given time period. Law of Demand:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/31/2011 for the course ECON 111 taught by Professor Jerryfreek during the Spring '11 term at Ave Maria.

Page1 / 4

Vocab - Scarcity The situation in which the limited resources available are insufficient to satisfy unlimited wants Factors of production All

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online