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Objective 1.01
Economic Systems
Term | Definition |
---|---|
Capital Resources | Goods and money used in the production of goods and services |
Command Economy | Economics systems in which the government owns resources and dictates what is produced |
Competitors | Businesses that offer the same goods to same customers |
Consumer | Buts and uses the goods and services |
Economic Decision-making | Process of choosing which needs or wants will be satisfied |
Economic resources | Means from which goods and services are produced |
Economic | Study of the decisions made for production, distribution and consumption of goods and services to satisfy needs and wants |
Entrepreneurial Resources | The initiative to combine natural, human and capital resources |
Free Enterprise | Economic system which freedom to consume and produce goods and services exists |
Freedom of choice | Opportunity to make choices of goods and services and accept consequences of decisions |
Goods | Items purchased to satisfy needs and wants |
Human resources | People using efforts, knowledge and skills at work to produce goods and services |
Market Economy | Goods and services are owned and controlled by the people |
Market Price | The point where supply and demand are equal |
Marketplace | Anywhere goods and services exchanges hands |
Mixed Economy | Combines elements of the command and market economies |
Natural Resources | Raw materials supplied by nature |
Needs | necessities required for living |
Opportunity Cost | Value of the next-best alternative that is forgone to produce or obtain another product |
Private Property | Right to purchase, use and discard of things of value |
Produces | Individuals and organizations that determine which goods and services will be available for consumptions |
Profit | money left after selling goods and services and costs of operating a business have been paid |
Scarcity | Condition that exists when wants or needs exceed resources available |
Services | Activities that can be consumed at the time of purchase to satisfy needs and wants |
Tradeoff | Process of giving up something for gaining something else |
Traditional Econmy | Economic system in which decisions are based on customs centered on family |
Wants | Goods that are purchased to add comfort or pleasure to life |