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chapter19
Question | Answer |
---|---|
goods | Tangible products that we use to satisfy our wants and needs. |
services | Work performed by a person for someone else. |
factors of production | Resources necessary to produce goods and services. |
natural resources | Gifts of nature that make production possible. |
labor | Human effort directed toward producing goods and services |
capital | Previously manufactured goods used to make other goods and services. |
entrepreneur | Individual who starts a new or owns a business. |
gross domestic product (GDP) | Total dollar value of all final goods and services. |
standard of living | The material well-being of an individual, group, or nation. |
market | Free and willing exchange of goods and services between buyers and sellers. |
factor market | A market where productive resources are bought and sold. |
product market | A market where producers offer goods and services for sale. |
productivity | The degree to which resources are being used effieciently to produce goods and services. |
specialization | When people, businesses, regions and/or nations concentrate on goods and services that they can produce better than anyone else. |
division of labor | The breaking down of a job into seperate, smaller tasks to be performed individually. |
economic interdependence | A reliance on others. |
capitalism | A system in which private citizens own most. |
free enterprise | Economic system in which individuals and businesses are allowed to compete for profit. |
consumer sovereignty | The role of consumer as the ruler of the market. |
private property rights | The freedom to own and use our property as we choose as long as we do not interfere with the rights of others. |
competition | The struggle that goes on between buyers and sellers to get the best products for the lowest prices. |
profit | The money a business recieves for its products. |
profit motive | The driving force for wanting profit. |
voluntary exchange | The act of buyers and sellers freely and willingly engaging in m arket transactions. |
laissez-faire economics | Economic system where government should not interfere in the marketplace. |