Term
click below
click below
Term
Normal Size Small Size show me how
2.02 Key Terms
Term | Definition |
---|---|
Capital goods | Manufactured or constructed items that are used in the production of goods and services |
Consumer goods and services | Products produced for personal consumption Consumption: The process or activity of using goods and services; The economic process or activity of using goods and services |
Demand | The quantity of a good or service that buyers are ready to buy at a given price at a particular time |
Distribution | The economic process or activity by which income is divided among resource owners and producers |
Economic goods | Physical objects that are useful, scarce, and transferable and which satisfy economic wants |
Economic resources | The human and natural resources and capital goods used to produce goods and services |
Economic services | Productive acts that are useful, scarce, and transferable and which satisfy economic wants |
Economic want | A desire for something that can only be satisfied by spending money |
Economics | The study of how to meet unlimited, competing wants with limited resources |
Elastic demand | A form of demand for products in which changes in price correspond to changes in demand |
Elasticity | An indication of how changes in price will affect changes in the amounts demanded and supplied |
Equilibrium | The point at which the quantity supplied is equal to the quantity demanded |
Excess demand | The situation that exists when demand is greater than supply |
Excess supply | The situation that exists when supply is greater than demand |
Exchange | The economic process of trading one good/service for another |
Factors of production | Productive resources; human and natural resources and capital goods |
Human resources | People who work to produce goods and services |
Industrial good and services | Products purchased by producers for resale, to make other goods and services, and/or to use in business operations |
Inelastic demand | A form of demand in which changes in price do not affect demand |
Law of demand | Economic principle which states that the quantity of a good or service that people will buy varies inversely with the price of the good or service |
Law of supply | Economic principle which states that the quantity of a good or service that will be offered for sale varies in direct relation to its price |
Law of supply and demand | Economic principle which states that the supply of a good or service will increase when demand is great and decrease when demand is low |
Natural resources | Items found in nature that are used to produce goods and services |
Need | Something required or essential that is lacking |
Noneconomic want | Desires for things that can be obtained without spending money |
Opportunity cost | The benefit that is lost when you decide to use scarce resources for one purpose rather than for another |
Price | The amount of money paid for a good, service, or resource |
Production | The economic process or activity of producing goods and services |
Scarcity | A condition resulting from the gap between limited resources and unlimited wants for goods and services |
Supply | The quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period |
Trade-off | Giving up all or a part of one thing in order to get something else |
Want | A desire for something that is not required |