Question | Answer |
goods | tangible products that we use to satisfy our wants and needs |
services | work performed by a person for someone else |
factors of production | resources necessary to produce goods and services |
natural resources | gifts of nature that make production possible |
labor | human effort directed toward producing goods and services |
capital | previously manufactured goods used to make other goods and services |
entrepreneur | individual who starts a new business, introduces, a new product, and improves a management technique |
Gross Domestic Product | GDP; total dollar value of all final goods and services produced in a country during a single year |
standard of living | the material well-being of an individual, group, or nation measured by how well their necessities and luxuries are satisfied |
output | something produced |
innovate | to introduce or create something new |
market | free and willing exchange of goods and services between buyers and sellers |
factor market | a market where productive resources are bought and sold |
product market | a market where producers offer goods and services for sale |
productivity | the degree to which resources are being used efficiently to produce goods and services |
specialization | when people, businesses, regions, and/or nations concentrate on goods and services that they can produce better than anyone else |
division of labor | the breaking down of a job into separate, smaller tasks to be performed individually |
economic interdependence | a reliance on others, as they rely on you, to provide goods and services to be consumed |
sector | a segment or distinct part |
consume | to use up |
input | resources factored into the economy |
capitalism | a system in which private citizens own most, if not all, of the means of production and decide how to use them within legislated limits |
free enterprise | economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference |
consumer sovereignty | the role of consumer as the ruler of hte market, determining what products will be produced |
private property rights | the freedom to own and use our own property as we choose as long as we do not interfere with the rights of others |
competition | the struggle that goes on between buyers and sellers to get the best products at the lowest prices |
profit | the money a business receives for its products or services over and above its costs |
profit motive | the driving force that encourages individuals and organizations to imporve their material well-being |
voluntary exchange | the act of buyers and sellers freely and willingly engaging in market transactions |
laissez-faire economics | economic system where government should not interfere in the marketplace |
accumulate | to increase in quantity or size |
dispose | to throw away or discard |
incentive | reward offered to try to persuade people to take certain economic actions |