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Partners and trade
Term | Definition |
---|---|
Trade | The exchange of something of value |
Specialization | The concetration of production on fewer kinds of goods and services than are consumed. |
Interdependance | Reliance on others to satisfy wants. |
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 peoples's wants |
services | Action 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 witch quantity supplied equals quantity demand (also refferd to as the equilibrium price) |
oppertunity cost | the value of the next best alternitive given up when a choice is made |
supply | the quantities of a good or service thatproducers are willing and able to provide at various prices during a given time period |
demand | the quantities of a good or service that producers are willing and able to provide at varius prices during a given time period |