Transcript Civics & Economics Top 100

Civics & Economics
Top 100
What every student should know to
pass the Civics & Economics EOC
Goal 7
Goal 7: The learner will investigate how
and why individuals and groups make
economic choices.
Factors of Production
• Resources necessary to produce goods
and services
• The four factors of production are natural
resources, labor, capital, and
entrepreneurs.
Natural Resources
• Gifts of nature that make production
possible
Labor
• Human effort directed toward producing
goods and services
Capital
• Previously manufactured goods used to
make other goods and services
Entrepreneurs
• Individuals who start new businesses,
introduce new products, and improve
management techniques
Scarcity
• Not having enough resources to produce
all of the goods and services we would like
to have
Trade-offs
• The alternative you face if you decide to
do one thing rather than another
Opportunity Costs
• The cost of the next best alternative use of
time and money when choosing to do one
thing rather than another
Law of Diminishing Returns
• The tendency for a continuing application
of effort or skill toward a particular project
or goal to decline in effectiveness after a
certain level of result has been achieved.
Marginal Utility
• The additional satisfaction a consumer
gains from consuming one more unit of a
good or service.
Productivity
• The degree to which resources are being
used efficiently to produce goods and
services
Specialization
• When people, businesses, regions and/or
nations concentrate on goods and
services that they can produce better than
anyone else
Division of Labor
• The breaking down of a job into separate,
smaller tasks to be performed individually
Needs
• Requirements for survival, such as food,
clothing, and shelter
Wants
• Things we would like to have, such as
entertainment, vacations, and items that
make life comfortable and enjoyable
Cost-Benefit Analysis
• Economic model that compares the
marginal costs and marginal benefits of a
decision
Command Economy
• An economic system in which the major
economic decisions are made by the
central government
Market Economy
• An economic system in which individuals
own the factors of production and make
economic decisions through free
interaction
Mixed Economy
• An economic system combining the
characteristics of more than one type of
economy
Traditional Economy
• An economic system in which the
decisions of what, how, and for whom to
produce are based on custom or habit