Flashcards
Chapter 18 & 19 Vocabulary, Economics
Cards in this deck (25)
- 1Economicsstudy of how we make decisions in a world in which resources are limited
- 2Wants vs. needsneeds- required
Wants- optional - 3Scarcitywhenever we do not have enough to produce all the things we would like to have.
- 4Factors of Productionresources necessary to produce goods and services
- 5Landcomes from the earth
- 6Laborhuman effort directed toward producing goods and services
- 7Capitalpreviously manufactured goods used to make other goods and services
- 8EntrepreneurshipOwnership
- 9Entrepreneurindividual who starts a new business, introduces a new product, and improves a management technique
- 10Trade-offthe alternative you face if you decide to do one thing rather than another
- 11opprotunity costthe cost of the next best alternative use of time and money when choosing to do one thing rather than another
- 12Gross Domestic Producttotal dollar value of all final goods and services produced in a country during a single year
- 13Circular Flow Modelb
- 14factor marketa market where productive resources are bought and sold
- 15Product marketsa market where producers offer goods and services for sale
- 16specializationwhen people , businesses, regions, and/or nations concentrate on goods and services that they can produce better than anyone else
- 17division of laborthe breaking down of a job into separate, smaller tasks to be preformed individually
- 18Adam SmithFather of market economy
- 19Capitalisma system in which private citizens own most, if not all, of the production and decide how to use them within legislated limits
- 20free enterprise systemeconomic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference
- 21Consumersomeone who buys a good or service
- 22private ownership
- 23competitionthe struggle that goes on between buyers and sellers to get the best product at the lowest prices
- 24profit motivethe driving force that encourages individuals and organizations to improve their material well-being
- 25Laissez-faire economicseconomic system where government should not interfere in the marketplace