the study of using scarce resources to satisfy unlimited wants
economics
the "big picture" of economics
macroeconomics
includes land, labor, and capital
factorsofproduction
can be either natural resources or location
land
previously manufactured goods used to produce other goods
capital
ideas, innovations, and inventions
entrepreneurship
the work that people do
labor
the value of the next best alternative
opportunitycost
system where decisions are made according to customs
traditional
system where government controls the resources
command
system includes elements of market and command
mixed
tangible items
goods
the basic problem of economics
scarcity
the amount of output that results from given level of input
productivity
activities done for others for a fee
services
using science to develop new methods of production
technology
an educated guess
hypothesis
another name for a market system
capitalism
french term means minimal government interference
laissezfaire
amount of $ left over after expenses have been paid
profit
rivalry among producers
competition