click below
click below
Normal Size Small Size show me how
economics vocabulary
Term | Definition |
---|---|
trade | The exchange of something of value. |
specialization | The concentration of production on fewer kinds of goods and services that are consumed. |
interdependence | Reliance on others to satisfy wants. |
production | The act of combining natural resources, human resources, capital goods and entrepreneurship. |
consumption | The purchase of use of goods and services. |
goods | Objects that are capable of satisfying people's wants. |
services | Actions that are capable of satisfying people's wants. |
market | The interaction of buyers and sellers exchanging goods and services |
market clearing price for goods | The one price at which quantity supplied equals quantity demanded (also referred to as the equilibrium point). |
opportunity cost | The value of the next best alternative given up when a choice is made |
supply | The quantities of a good or services that consumers are willing and able to buy at various prices during a given period. |
demand | The quantities of a good or service that producers are willing and able to buy at various prices during a given period. |
import | Goods that are brought into a country as part of trade. |
export | Goods that leave a country as part of trade. |
scarcity | The lack of sufficient resources to produce all goods and services people desire. |