Question | Answer |
Mixed Economy | Combines elements of command and market economies |
Entrepreneurial Resources | To combine human, natural and capital resources |
Opportunity Cost | Value of the next-best alternative that is forgone to produce or obtain another object |
Competitors | Businesses that offer the same goods to the same customers |
Producers | Individuals and organizations that determine which goods and services will be available for consumption |
Economic Decision Making | Process of choosing which needs or wants will be satisfied |
Economic Resources | Means from which goods and services are produced |
Private Property | Right to purchase, use and discard things of value |
Services | Activities that can be consumed at the time of purchase to satisfy needs and wants |
Scarcity | Exists when wants and needs exceed resources available |
Economics | The study of the decisions made for production, distribution, and consumption of goods and services to satisfy needs and wants |
Needs | Necessities required for living |
Consumer | Buys and uses the goods and services |
Capital Resources | Goods and money used in the production of goods and services |
Natural Resources | Raw materials supplied by nature |
Human Resources | People using efforts, knowledge, and skills at work to produce goods and services. |
Free Enterprise | Economic system which freedom to consume and produce goods and services exists |
Traditional Economy | Economic system in which decision are based on customs and centered on family |
Goods | Items purchased to satisfy needs and wants |
Profit | Money left after selling goods and services and costs of operating a business have been paid |
Wants | Items purchased to add comfort and pleasure to life |
Marketplace | Any place where goods and services are exchanged |
Tradeoff | Process of giving up something for gaining something else |
Market Economy | Goods and services are owned and controlled by the people |
Freedom of Choice | Opportunity to make choices of goods and services and accept consequences of decisions |
Command Economy | Economics system in which the government own resources and dictates what is produced. |
Market Price | The point where supply and demand meet |
Gross Domestic Product (GDP) | The total dollar value of all the final goods produced in a county during one year |
GDP Per Capita | Output per person |
Productivity | Production output in reltion to a unit of input |
Business Cycle | Movement of the economy from one condition to another and back again |
Prosperity | Most people who want to work are working, businesses produce goods and services in record numbers, wages are good, and the GDP growth increases. |
Recession | Demand begins to decrease, businesses lower production, unemployment begins to rise and GDP growth slows for two or more quarters. |
Depression | Marked by a prolonged period of high unemployment, weak consumer sales and business failures. |
Recovery | Unemployment begins to decrease, demand for goods and services increses, and GDP begins to rise. |
Inflation | Increase in the general level of prices |
Deflation | Decrease in the general level of prices |