Term | Definition |
goods | tangible products that we use to satisfy our wants and needs |
services | work preformed 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 |
captial | previously manufactured goods to make other goods and services |
entrepreneur | individual who starts a new business introduces a new product improves a management technique |
gross domestic product | total dollar value of all final goods and services produce in a country during a single year |
standard of living | the material of well being of an individual group or nation measured by how well their necessities and luxuries are satisfied |
market | free and willing exchange of goods and services between buyers sellers |
factor market | a market where productive resources are brought and sold |
product market | a market where producers offer goods and services |
productivity | the degree to which resources are being used efficiently to produce goods and services |
specialization | when people business 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 preformed individually |
economic interdependence | a reliance on others, as the rely on you, to provide goods and services to be consumed |
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 sovereighty | the role of the consumer as the ruler of the 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 will laws |
competition | the struggle that goes on between buyers and sellers to get the best products at the lowest prices |
profit | the money a business recieves for its products or services |
profit motive | the driving force encourages individuals and organizations to improve their material well-being |
voluntary exchange | the acts of buyers and sellers freely and willingly engaging in market transactions |
laissez-faire economics | economic system where government should not interfere in the marketplace |