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Chapter 1
Vocab 1
Term | Definition |
---|---|
Needs | things that are required to live |
Wants | things that add pleasure and comfort to your life |
Goods | things you can see and touch, products you can purchase to meet wants and needs |
Services | activities that are consumed at the same time they are produced |
Factors of production | economic resources, including nature, human and capital |
Economic Resources | The means through which goods and services are produced |
Tradeoff | when you give something up to have something else |
Opportunity cost | value of next best opportunity that you did not choose |
Economic system | nation’s plan for answering the three economic questions |
Command economy | economy in which resources are owned and controlled by the government |
Market economy | an economy in which resources are owned and controlled by the people of the country |
Traditional economy | economy in which goods and services are produced the way that they have always been |