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Intro to Economics
Term | Definition |
---|---|
Scarcity | the inability to produce everything people need and want. |
Command Economy | this system answers economic questions through strict governmental control and regulations. |
Market Economy | this system answer economic questions based on supply and demand in the market. What the people want to buy and sell determines what goods and services are produced. |
Traditional Economy | this system answers economic questions based on traditional customs and values passed down from generation to generation. |
Goods | items that satisfy human wants and needs. Objects we use. |
Services | an act done for someone . |
Natural resources | raw materials needed to produce the goods and services. |
Human capital | the work, skill, knowledge, and experiences required to produce goods and services. |
Economic system | the different ways people answer economic questions. |
Supply | quantity of a good that consumers are willing and able to purchase . |
Demand | how much people want the product or services . |
Capital goods | tools and technology needed to produce the goods and services |
Bartering | a system of exchange whereby one good/service is given in return for another; bartering does not require money. |
Production | The creation or manufacture for sale of goods and services. |