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Economics Vocab
Question | Answer |
---|---|
Opportunity Cost | What is given up by doing one thing instead of another |
Productive Capacity | The total amount of things that a group of people can produce |
Technology | Special knowledge of how to make or do something |
Capital Goods | Complex tools needed for making things |
Specialization | To do one thing very well |
Division of Labor | Different workers do different jobs to make a product |
Assembly Line | A product rolls past each worker; each worker performs his or her specialized job |
Price | Includes how much a product costs and how difficult it is to get |
Scarcity | When a product is hard to get |
Surplus | When a product is easy to get |
Free Market | People can trade with each other almost at any time and in any way that they both agree |
Voluntary Exchange | People can buy what they want and sell what they want |