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Partners in Trade
Question | Answer |
---|---|
The exchange of something of value | Trade |
The concentration of production on fewer kinds of goods and services than are consumed | Specialization |
Reliance on others to satisfy wants | Interdependence |
The act of combining natural resources, human resources, capital goods and entrepreneurship to make goods and services | Production |
The purchase or use of goods and services | Consumption |
Objects that are capable of satisfying people's wants | Goods |
Actions that are capable of satisfying people's want | Services |
The interaction of buyers and sellers exchanging goods and services | Market |
The one price at which quantity supplied equals quantity demanded (also referred to as the equilibrium price) | Market Clearing Price for Goods |
The value of the next best alternative given up when a choice is made | Opportunity Cost |
The quantities of a good or service that producers are willing and able to provide at various prices during a given period | Supply |
The quantities of a good or a service that consumers are willing and able to buy at various prices during a given period | Demand |
Goods that are brought into a country as part of trade | Import |
Goods that leave a country as part of trade | Export |
The lack of sufficient resources to produce all the goods and services people desire | Scarcity |