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objective 101
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 |
competition | businesses that offer the same goods to the same customers |
consumes | buys and uses the goods and services |
economic decision marking | process of choosing which need or wants will be satisfied |
economic resources | means from which goods and services are produce |
economics | study of the decision made from production, distribution, and consumption of goods and services to satisfy needs and whants |
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 decions |
goods | items purchased to satisfy needs and wants |
human resources | people using efforts, knowledge, and kills at work to produce goods and services |
market economy | goods and services are owned and controlled by people |
market price | the point where supply and demand are equal |
marketplace | anywhere goods and services exchange 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 if forgone to produce or obtain another product |
private property | right to purchase, use , and discard of things of value |
producers | individuals and organizations that determine which goods and services will be available for consumption |
profit | money left after selling goods and services and cost of operating a business have been paid |