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Econ Defs
Economic Words
Question | Answer |
---|---|
Want | Things people would like to have but can live without |
Need | Things that people must have in order to survive |
Barter | A type of trade in which individuals exchange goods and services instead of using money |
Goods | Anything that can be grown or manufactured |
Services | Something that a person does in exchange for money or value |
Consumer | Someone who uses goods or services |
Producer | Individual or group of people who creates or manufactures a good or service through physical or mental effort |
Production | *Combining rescorces to make G and S |
Consumption | *Using G and S |
Distribution | 1. Allocation of wealth 2.Movement of goods |
Factors of Production | Land,Labor,Capital and Entrepreneurship |
Land | Natural Rescorces |
Labor | Represents the huoman capital avalible to make raw stuff into G's |
Capital | Money and physical assets |
Scarcity | A limited supply of rescorces in comparison to unlimited wants/needs |
Supply | The amount of a product that is avalible to consumers |
Demand | The amount of a G or S that we are willing/able to buy |
Law of supply | Businesses will provide more products when they can sell them at higher prices. |
Law of Demand | We want more when we can buy it for lower prices |
Market Price | THe price that satisfies both producers for profit snd consumers for value |
Choice | Selecting from a set of alterinaves |
Opportuniy Cost | What you give up when you make a choice/ The OTHER thing that you didnt choose |
Equilibrium Price | The market price at which the supply of an item equals the quantiy demanded |
Surplus | To much of something. Can cause price drop(clearance) |
Entrepreneur | Inventor/Person with ideas Someone that creates a busniss out of raw. Take the risk |