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objective101
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 | businesses the offer the same goods to the same customers |
consumer | 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 services are produced |
economics | 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 decesions |
goods | item purchased to satisfy needs and wants |
human resources | people using efforts, knowledge, 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 |
market place | 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 is 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 consequences |
profit | money left after selling goods and services and costs of opening 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 or gaining something else |
traditional economy | economic system in which decisions are based on customers and centered on family |
wants | goods that are purchased to add comfort or pleasure to life |