Post on 31-Mar-2015
DecisionMaking
Money ScarcityEntre-
preneursHuman Capital
$100 $100 $100 $100 $100
$500 $500 $500 $500 $500
$400 $400 $400 $400 $400
$300 $300 $300 $300 $300
$200 $200 $200 $200 $200
Decision Making - $100
Reaching a conclusion after considering alternatives and their results.
Decision Making - $100
What is Decision Making?
Decision Making - $200
An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.
Decision Making - $200
What are costs?
Decision Making - $300
Monetary or non-monetary gain received because of an action taken or a decision made.
Decision Making - $300
What are benefits?
Decision Making - $400
People who use goods and services to satisfy their personal needs and not for resale or in the production of other goods and services.
Decision Making - $400
Who are consumers?
Decision Making - $500
The giving up of one benefit or advantage in order to gain another regarded as more favorable.
Decision Making - $500
What is a Trade-off?
Money - $100
Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value.
Money - $100
What is money?
Money - $200
Tangible objects that satisfy human wants.
Money - $200
What are goods?
Money - $300
Activities performed by people, firms, or government agencies to satisfy human wants.
Money - $300
What are services?
Money - $400
The money in circulation in any country.
Money - $400
What is currency?
Money - $500
Trading a good or service for another good or service, or for money.
Money - $500
What is exchange?
Scarcity - $100
Desires that can be satisfied by consuming or using a good or service.
Scarcity - $100
What are wants?
*Remember: economists do not differentiate between wants and needs.
Scarcity - $200
The condition that exists because human wants exceed the capacity of available resources to satisfy those wants.
Scarcity - $200
What is scarcity?
Scarcity - $300
“Gifts of nature” that can be used to produce goods and services, for example: oceans, air, mineral deposits, forests and fields of land.
Scarcity - $300
What are natural resources?
Scarcity - $400
A characteristic of people who assume the risk of organizing productive resources to produce goods and services.
Scarcity - $400
What is entrepreneurship?
Scarcity - $500
Resources and goods made and used to produce other goods and services.
Scarcity - $500
What are capital goods?
Entrepreneurs - $100
One who draws upon his or her skills and initiative to launch a new business venture with the aim of making a profit.
Entrepreneurs - $100
What is an entrepreneur?
Entrepreneurs - $200
Income received for entrepreneurial skills and risk taking, calculated by subtracting all of a firm’s explicit and implicit costs from its total revenues.
Entrepreneurs - $200
What is profit?
Entrepreneurs - $300
Something manufactured or refined for sale.
Entrepreneurs - $300
What is a product?
Entrepreneurs - $400
The chance of losing money.
Entrepreneurs - $400
What is risk?
Entrepreneurs - $500
Any activity or organization that produces or exchanges goods or services for a profit.
Entrepreneurs - $500
What is (a) business?
Human Capital - $100
The health, education, experience, training, skills, and values of people. Also known as human resources.
Human Capital - $100
What is human capital?
Human Capital - $200
Payments for labor services that are directly tied to time worked, or to the number of units of output produced.
Human Capital - $200
What are wages?
Human Capital - $300
Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest, and dividends.
Human Capital - $300
What is income?
Human Capital - $400
An increase in real output as measured by real GDP or per capita real GDP.
Human Capital - $400
Economic Growth
Human Capital - $500
The amount of output (goods and services) produced per unit of input (productive resources) used.
Human Capital - $500
What is productivity?