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ECONOMIC TERMS AND C
Question | Answer |
---|---|
Scarcity | Condition caused by people’s unlimited wants and the relatively limited resources to meet those wants |
Opportunity cost | What a person gives up when they choose one thing over another |
Trade-off | Accepting less of one thing to get more of something else |
Economic systems | The ways in which people(s) deal with the problems of scarcity and opportunity cost |
Money | Anything that serves as a medium of exchange |
Markets | Arrangements that allow buyers and selers to meet and exchange goods or services |
Supply | Different amounts of goods and services that will be offered for sale at a certain price for a certain amount of time |
Demand | Various goods and services that will be purchased at a certain price during a specific time period |
Competition | More than one buyer or seller in the same market |
Gross domestic product (gdp) | The market value of all final goods and services produced by a country in one year |
Unemployment | The number of people without a job actively seeking work |
Inflation | An increase in the average price level of the entire economy |
Deflation | A decrease in the average price level of the entire economy |
monetary policy | Actions that affect the amount of money and the cost of credit avaliable in the economy |
Fiscal policy | Changes in taxes or government spending that are designed to affect demand |
Exchange rate | The price of one nation’s currency in terms of another nation’s currency |
Capital | The tools, equipment, and factories used in the production of goods and services |
Factors of production | Things needed to produce any good or service. they are land, capital, labor, entrepreneurship |
Laissez-faire | Means no government interference in the economy. french for allow them to do |
Want | Not a basic requirement for survival |