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BE UNIT2.02
Term | Definition |
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Capital Goods | any manufactured or constructed item that is used to produce goods and services |
Consumer Goods and Services | items that are produced are typically for personal use rather then for use as capital goods |
Consumption | the process or activity of using goods and services |
Demand | as peoples desires or demand for resources goods, and service increases, so does the amount of money they are willing to spend |
Distribution | the process or activity by which income is divided among resource owners and producers |
Economic Goods | must be physical (tangible) object, must be useful, must be scarce |
Economic Resources | items that are used to produce goods and services |
Economic Services | a government- provided services and resources meant to help struggling individuals connect with support that can help them meet their needs |
Economic Want | are desires for items that can only be obtained by spending money |
Economics | is the study of how to meet unlimited, competing wants with limited resources |
Elasticity | an indication of how changes in price will affect changes in the amounts demanded and supplied |
Equilibrium | the point of which the quantity supplied is equal to the quantity demanded |
Excess Supply | the price is set higher than the equilibrium price for the product |
Exchange | a market place where the trade of financial instruments such as commodities and securities occur |
Factors of Production | they enable business to produce the goods and services that consumers wants |
Human Resources | are valued for the work they do to produce goods and services |
Industrial goods and services | all material products and intangible services produced by companies |
Inelastic demand | exists if the demand for a good or service is constant, even is the products price changes |
Law of Demand | states that the quantity of a good or service that consumers will buy varies inversely with the price of the good and service |
Law of Supply | the quantity of a good or service that will be offered for sale varies in direct relation to its selling price |
Natural Resources | items found in the environment that are used to produce goods and services |
Need | something essential to survive |
Noneconomic Wants | wants that can be satisfied without spending money |
Opportunity Costs | the benefit that is lost when u decide to use scarce resources for one purpose rather that the other |
Price | is the amount of mo0ney that is p[aid for a good, service, or resource |
Production | fewer products if workers produce higher quality products |
Scarcity | gap between limited resources and unlimited wants for goods and services |
Supply | the total amount of a specific good or service that is available to consumers |
Trade Off | any activity carried on for the production of income for selling goods and preforming services |
Wants | are desires for things that may or may not be necessities |
Law of Supply and Demand | the supply of a good or service will increase when the demand is great and decreases when demand is low |