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Personal Finance
Term | Definition |
---|---|
opportunity cost | the loss that occurs when you make a choice between two things; what you give up to get something else |
specialization | when workers focus on performing separate tasks, thereby performing fewer tasks more often |
trade & voluntary exchange | when people choose to trade their goods or services so that both individuals will benefit |
productivity | a measure of how many goods or services are produced per worker |
price incentives | the concept that people will usually buy the goods that have the lowest price, or that they want to sell their goods for the highest available price |
scarcity | the condition of not being able to have all the goods or services you need or want |
goods | objects that people are paid to make |
services | jobs that people do to help others |