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Chapter 1
Our Market Economy
Term | Definition |
---|---|
Consumers | Or people who buy goods and services. |
Demand | Desire to buy a particular thing or service. |
Supply | The amount of goods or services that are available. |
Free Market Economy | In this economic system people, not the government, own the factories, businesses, and stores that make, sell, and distribute goods or services. |
Competition | The struggle among producers for the money consumers spend. |
Scarcity | Means that there is a limit to what we can have. |
Opportunity cost | The thing you have to give up to get the thing you want. |
Bank account | You might think that a bank saves each dollar you give it in a special place. |
Interest | In exchange for using your money, the bank pays you interest. |
Credit Card | A card that allows its holder to use it for small loans. |
Trade Agreement | These agreements make it easy for businesses to import or export goods to and from these countries. |
Import | Bring in. |
Export | Send out. |
Manufacture | Make goods. |
Specialize | To concentrate in one particular area. |