Question | Answer |
goods | physical items such as food, clothing, cars, and homes. |
services | activities people do for others for a fee |
consumer | one who buys or uses goods or services |
producer | THe person or business that uses resources to make goods or provide services |
natrual resources | a gift of nature,part of the natural enviroment |
human resources | the people who produce goods and provide services |
capital resources | the money and property used to produces goods and services |
scarcity | the concept that there are not enough resources |
opportunity cost | the value of the second choice in a decision-making situation |
supply | the amount of the goods or services |
demand | the amount of goods or services consumers are willing and able to buy |
profit | the amount left after costs are subtracted from the selling price |
traditional economy | an economy in which customs determine questions and answer |
command economy | an economy controlled by the govenment |
market economy | an economy were individals answer questions |
barter | trading goods and services without money |
mercantilism | an economic policy under which a government controls resources |
smuggling | illegal trade |
mineral resources | inorganic sudatances that were formed by earth |
nonrenewable | refers to natural resources not replaced by nature once they are extracted from the environment. |
lignite | the lowest quality coal; a soft, brownish-black coal that, because of its high water content, burns poorly |
biological resources | plants and animals; also called flora (plants) and fauna (animals) |
renewable | biological resources that replenish themselves over time. |
pulpwood | smaller, softer trees (mostly pine) that are shredded into pulp to be made into paper |
labor union | an organization of workers ofrmed to improve wages, benefits, and working conditions for workers. |
private goods & Services | goods and services produced in a market economy |
public goods & services | goods and services provided by the government |
interdependent | refers to an economic system where producers and consumers rely on each other and on other economies to succeed. |
Superport | an offshore port in Gulf of Mexico that was constructed to handle extremely deep ships; serves primarily the offshoreoil industry and Louisiana's oil refineries. |
tariff | a tax on imports designed to keep out foreign competition. |
economic indicators | economic information used to measure the economy, includes gross domestic product, consumer price index, inflation rate, and unemployment rate. |
gross domestic product | an economic indicator; the total market value of all goods and services produced in the US in a certain time period. |
consumer price index | an economic indicator; a monthly price survey for a list of goods and services |
inflation | an economic indicator reflecting a steady increase in consumer price index |
unemployment rate | an economic indicator; the percentage of people who are out of work and looking for jobs |