Chapter 6 - Economics

• Resource


  Anything used to satisfy a human want.
• Natural Resource


  An item produced from nature used to satisfy a want.
• Economics


  The study of how people choose to allocate resources to satisfy their wants.
• Economy


  All resources and decisions involved in production, distribution, and consumption.
• Economic System


  The way a society chooses to manage decisions of production, distribution, and consumption.
• Cost


  Anytime you give up one thing to get something else, it is costing you.
• Land


  Natural resources used for production.
• Labour


  Human effort or skill used to produce something.
• Capital


  Man-made things, tools, used in production.
• Production


  Making a good or service for consumption.
• Employer


  A person who organizes labour for production.
• Employee


  A person who does the labour or effort for production.
• Consumer


  The person who buys and/or uses a product.
• Producer


  People who are responsible for creating a good or service.
• Dollar Vote


  When a person buys one product over another.
• Competition


  Rivalry among producers for the dollar vote of consumers.
• Monopoly


  When a producer controls all of the production of a good or service.
• Profit Motive


  Producers make their production process efficient in order to make the most money.
• Labour Intensive


  Production that uses more human effort than capital, because it is cheaper.
• Capital Intensive


  Production that uses more capital than human effort, because it is cheaper.
• Private


  Control of decision-making by individuals and business.
• Public


  Control of decision-making by the government, for the citizens.
• Public Good


  What is best for society as a whole.
• Cooperation


  Working together for the interests of all.
• Individualism


  Working alone in your own self-interest.
• Scarcity


  A condition where you do not have enough resources to fill your needs/wants.
• Need


  Something required for survival.
• Want


  Something you desire that goes beyond a physical necessity.
• Goods


  Physical objects that are produced.
• Services


  Actions or activities that one person performs for another.
• Factors of Production


  Land, Labour, and Capital.
• Democracy


  Rule (governance) by the people.
• Dictatorship


  Rule (governance) by a single person.
• Consensus


  A decision-making model where all participants agree on the plan.
• Stereotype


  A narrow, and often extreme, view of an ideal, or "type" of person.
• Supply


  How much (of a product or resource) there is available for use.
• Demand


  How much people want a product or resource.
• Equilibrium


  When supply is equal to (meets) demand.
• Price


  The amount of money a consumer puts out to buy a product.
• Unemployment Rate


  The percentage of available workers without a job in a defined area.