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Economics Vocabulary
Learn more about economics by using these term/definition flash cards
Term | Definition |
---|---|
Trade | The exchange of something of value. |
Specialization | The concentration of production on fewer kinds of goods and services than are consumed. |
Interdependence | Reliance on others to satisfy want. |
Production | The act of combining natural resources, human resources, capital goods and entrepreneurship to make goods and services. |
Consumption | The purchase or use of goods and services. |
Goods | Objects that are capable of satisfying people's wants. |
Services | Actions that are capable of satisfying people's wants. |
Market | The interaction of Buyers and sellers exchanging goods and services. |
Market Clearing Price for Goods | The one Price at which quantity supplied equals quantity demanded. |
Opportunity cost | The value of the next best alternative given up when a choice is made. |
Supply | The quantities of a good or service that producers are willing to provide at various prices during a given period |
Demand | the quantities of a good or service that consumers are willing and able to buy at various prices during a given time period |
Import | Goods that are brought into a country as part of trade. |
Export | Goods that leave a country as a part of trade |
Scarcity | The lack of sufficient resources to produce all the goods and services people desire. |