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ECON 1 Foundations
ECON - Foundations
Term | Definition |
---|---|
Scarcity | how people satisfy unlimited wants and needs with limited resources. |
Land | natural resources needed to produce something |
Labor | human effort needed to produce something |
Capital | human-made resources or equipment needed to produce something |
Entrepreneurship | what makes a product unique |
Human Capital | knowledge, skills, and health that people invest in and accumulate throughout their lives |
Tradeoff | choosing one thing over another |
Opportunity Cost | what you have to give up to buy what you want in terms of other goods or services, or the next best thing |
Utility | usefulness of an item |
Opportunity Benefit | benefit you will gain with your selected choice over the benefit of alternative choices you did not select |
Marginal Cost | increase in total cost when producer increases output by one unit |
Marginal Benefit | additional gain from consuming or producing one more unit of a good or service |
Division of Labor | separation of a work process into a number of tasks, with each task performed by different people |
Specialization | process wherein a company or individual decides to focus their labor on a specific type of production |
Consumer Good | good purchased for consumption and not used later to produce another consumer good |
Capital Good | goods to produce final goods |
Production | combining various inputs, both material and immaterial in order to create final product |