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Economics Vocab
Term | Definition |
---|---|
Trade | The exchange of something value |
Specialization | The concentration of production on fewer kinds of goods and services that are consumed |
Interdepence | Reliance on others to satisfy wants |
Production | The act of combining natural resources, human resources, capital goods and services |
Comsuption | The purchase or use of goods and services |
Goods | Objects that are capable of satisfying peoples wants |
Services | Actions that are capable of satisfying peoples 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 (also referred to as the equilibrium price) |
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 and able to buy at various prices during a given time 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 a trade |
Export | Goods that leave a country as part of a trade |
Scarcity | The lack of sufficient resources to produce all the goods and services people desire |