Economics |
The study of how individuals and societies make choices under the condition of scarcity. |
Scarcity |
A condition that exists when there are not enough resources to satisfy all of the competing users |
Resource |
4 categories-labor, or human resource, land or natural resources, capital resources, and entrepreneurship |
Labor/human resources |
Physical and mental capabilities of individuals used in the production of goods and services |
Land/natural resources |
Includes all types of natural resources |
capital resources |
Include equipment, machines, tools, and infrastructure |
Entrepreneurship |
the process of running a business of one’s own |
Microeconomics |
the study of how households and firms make decisions and how they interact in markets |
Macroeconomics |
The study of the economy as a whole |
Economic model |
a simplified representation of an economic environment, often employing a graph |
Variable |
A factor that can change |
pie chart |
Data graphed as slices of a circular pie. |
bar graph |
A graphic form using bars to make comparisons of statistics |
time series graph |
Shows how the value of a variable changes Over time |
X-axis |
the horizontal number line on the graph |
Y-axis |
the vertical axis on a coordinate plane |
Intersection |
A point where lines intersect. |
vertical intercept |
The point at which the graph intersects the vertical axis |
positive relationship |
If both variables move in the same direction |
slope of a curve |
The vertical difference between the rise and the run |
Negative relationship |
One variable increases while the other decreases |