Unit One

18 cards·by via3000

The condition that exists when unlimited wants meet unlimited resources

scarcity

way to decide who gets what portion of goods available

rationing device

types of rationing devices

lottery, 1st come 1st serve, authority, etc.

the goods we want and cannot be made without resources

factors of production

land, labor, capital, entrepreneurship

resources found in nature

land resources

any physical or mental work

labor resource

finished tools used to make or deliver products

capital resources

New ideas, risk taking, or starting a business

entrepreneurship

the second best choice you give up when you choose something else

oppurtunity cost

comparing the good and bad things about a choice

cost-benefit analysis

the more you have of something, the less utility from each new unit

diminishing marginal utility

marginal benefit outweighs marginal cost

rational decision making

Using the smallest amount of resources to get the greatest amount of output

efficiency

the focus of a worker on a specific task or activity

specialization

Splitting up the work so that each person has one job and can specialize in what they do best

division of labor

something that motivates or encourages a person to take action

incentive

types of incentives

money, moral, coercive