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Economics Vocab
Term | Definition |
---|---|
Scarcity | The inability to satisfy all wants at the same time. |
Choice | Selecting an item or action from a set of possible alternatives. |
Opportunity Cost | What is given up when a choice is made. |
Resources | Factors that are used in the production of goods and services. |
Price | The amount of money exchanged for a good or service. |
Incentives | Thaings that incite or motivate; used to change economic behavior. |
Demand | The amount of a good or service that concumers are willing and able to buy at a certain price. |
Supply | The amount of a good or service that producers are willing and able to sell at a certain price. |
Supply and Demand | Determines price. |
Production | The combining of human, natural, capital, and entrepreneurship resources to make goods and services. |
Consumption | Using good or services. |
Free Market | Markets are allowed to operate without undue interference from the government. |
Private Property | Individuals and businesses have the right to own personal property. |
Profit | Earnings, or what is left after all expenses have been paid. |
Competition | Rivalry between producers/sellers of a good or service that results in better quality and/or lower prices. |
Consumer Sovereignty | Consumers determine through purchases what goods and services will be produced. |
Proprietorship | A form of business organization with one owner who takes all the risks and gets all the profits. |
Partnership | A form of business organizations with two or more owners who share the risks and the profits. |
Corporation | A form of business orgaization that is authorized by law to act as a legal person regardless of the number of owners. |
Entrepreneur | A person who takes risk to produce goods and services in search of profit. |