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Economics
Economics Vocabulary
Question | Answer |
---|---|
What is scarcity? | When there is not enough of something |
What is demand? | How much of something is needed. |
What is a natural resource? | Things nature provides used to produce a good or service. Ex. water and soil |
What is a consumer? | A peron who buys or uses a good or service. |
What is a producer? | A person who uses resources to make goods or services. |
What is revenue? | Money that businesses earn for selling goods or services. |
What is an incentive? | A reward or penalty to encourage people to make certain choices. |
What is a capital resource? | Goods or tools used to produce other goods or services. Ex. a tractor or a computer |
What is a human resource? | Using people's skills and ideas to produce or sell a good or service. |
What is an import? | A good or resource that we get from other countries. |
What is surplus? | Having more goods or resources than needed.q |
What is interdependence? | When people or businesses depend on each other to make or sell goods or services |
What is a good? | Things people buy to satisfy their wants or needs. |
What is opportunity cost? | The thing you give up after making a choice. |
What is competition? | When two or more businesses sell the same goods or services. |
What is profit? | The difference between revenue and the cost to produce a good or service. |
What is a market economy? | A type of economy where the businesses and consumers make decisions about the basic economic questions. |
What are the basic economic questions that decide what kind of economy a place has? | What goods or services will be produced? How will the goods or services be produced? Who will they be sold to? |
How does a surplus in supply usually affect the demand for a product? | The demand will decrease. |
How does scarcity of a popular product affect the demand for something? | The demand will increase. |
If something is scarce but in high demand, how does that affect the price? | The price may increase. |
What is specialization? | When people or businesses focus on producing a single product or service. |
public goods and services | Goods and services that are produced by the government for everyone. Ex. repairing roads and building schools. |
private goods and services | goods and services that are produced by private businesses and sold to consumers. |
taxes | what people pay the government in exchange for public goods and services. |
How does competition affect demand? | It can decrease demand because there's an increase in the supply of a product. |
How can competition affect the price of a product? | It can decrease the price because businesses try to give sale incentives to attract customers. |
What is circular flow? | The pattern of movement in which money flows through businesses and households for goods, services, or resources. Remember Dandy Dollar:) |