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C202 Key Terms
Economics and Economic Activities
Term | Definition |
---|---|
Capital goods | Manufactured or constructed items that are used to produce goods and services |
Consumer | Anyone who uses goods and services |
Consumption | The process or activity of using goods and services |
decision making | choosing among alternatives |
distribution | the process or activity by which income is divided among resource owners and producers |
economic activities | consumption, production, exchange, and distribution |
economic wants | desires for items that can only be obtained by spending money |
economics | the study of how to meet unlimited, competing wants with limited resources |
economizing | the process of deciding which goods and services will be purchased or provided so that the most satisfaction can be obtained ;deciding how scarce resources will be used |
exchange | the process of trading one good/ service for another |
free goods | items that can be obtained with money |
goods | tangible objects that can be manufactured or produced for resale |
human resources | people who work to produce goods and services |
income | The money received by resource owners and by producers for supplying goods and services to customers |
natural resources | items that are found in nature and used to produce goods and services |
noneconomic want | a desire for something that can be satisfied without spending money |
opportunity cost | the benefit that is lost when you decide to use scarce resources for one purpose rather than for another |
price | the amount of money paid for a good, service, or resource |
producers | the people who make or provide goods and services |
production | The economic process or activity of producing goods and services |
resource | Ant item that is used to accomplish another activity, such as producing/ providing good and services |
resource owners | those who provide human resources, natural resources, and capital good in order for production to take place |
Scarcity | A condition resulting from the gap between limited resources and unlimited wants for goods and services |
Services | Intangible activities that are performed by other people for money; productive acts that satisfy economic wants |
Trade-off | Giving up all or part of one thing to get something else |
want | A desire for something that may or may not be required |