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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 system in which the government owns resources and dictates what is produced. |
Competitors | business that offers the same goods to the same customers. |
Consumers | Buys 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 service are produced |
Economics | Study of the decisions made for production,distribution, and consumption of goods and service to satisfy needs and wants. |
Entrepreneurial Resource | The initiative to combine natural,human, and capital resources. |
Free enterprise | Economic system which freedom to consume and produce goods and service exists. |
freedom of choice | opportunity to make choices of goods and service 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 service. |
Market Economy | Goods and service are owned and controlled by the people. |
market price | the point where supply and demands are equal. |
Marketplace | Anywhere goods and services exchange hands. |
Mixed economy | combines elements of the commands and market economies |
Natural resource | Raw material 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. |