Economics Vocabulary - MRS. CASTLE SOUTH COBB HIGH SCHOOL

Economics Vocabulary

Fall 2018

1. Scarcity ? limited resources to meet unlimited wants ? always exists 2. Factor Market ? a place for the factors of production 3. Factors of production ? land, labor, capital, and entrepreneurship 4. Productivity ? producing something

5. Standard of living ? level of economic prosperity

6. Land ? all natural resources 7. Labor ? the work done by the people 8. Capital ? human-made resources to create goods and services. 9. Entrepreneur ? ambitious person who combines capital with new ideas 10. Human capital ? skills and knowledge gained by a worker

11. Production possibilities curve ? graph showing most efficient use of resources

12. Opportunity cost ? most desirable alternative that is given up

13. Trade-off ? an alternative we sacrifice in making a decision 14. Division of Labor ? the separation of tasks based on the skills of the worker

15. Specialization ? an area in which a person is an expert or more skilled

16. Traditional economy ? relies on habit, custom, or tradition to decide economic questions. think: Native Americans 17. Command economy? (aka. Centrally planned economy) central government makes all economic decisions 18. Market economy ? (aka. free enterprise) decisions made on a voluntary basis by individuals 19. Mixed economy ? market economy with government involvement 20. Public Good ? something created for use by the people: like roads and parks

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