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Economics

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Term
Definition
Economics   The study of how society chooses to use scarce resources to satisfy its unlimited wants.  
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Economist   Someone who studies economic theory and applies it to the real world.  
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Microeconomics   The study of a single factor of the economy rather than economy as a whole.  
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Macroeconomics   The study of an entire economy or one of its principle sectors.  
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Consumers   One who buys goods and services for personal use.  
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producers   A person, group, or business that makes goods or provides services to satisfy consumers.  
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Goods   An object or material that can be purchased to satisfy human wants and needs.  
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Resources   Anything used to produce goods or services.  
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Services   Any action or activity that is performed for a fee.  
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Factors of production   A resource used to peoduce goods and services.  
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Natural resources   In economics any material provided by nature that can be used to produce goods and provide services.  
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Human resources   Any human activity mental or physical used in any production process.  
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Capital resources   An item that is used in the production of other goods and services.  
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Capital goods   A building, structure, machine or tool that is used to produce goods and services.  
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Consumer goods   A finished product that is consumed by an individual.  
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Technology   Scientific and technical techniques used to produce existing products more efficiently.  
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Entrepeneurship   The organizational activities and risk taking involved in starting a new business  
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Entrepenuer   Someone who undertakes and develops a new business.  
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Scarcity   The fundamental condition of economics that results from the combination of limited resorces and unlimited wants.  
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Allocate   To distribute scarce resources in order to satisfy the greatest number of needs and wants.  
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Productivity   The level of output that results from a given level of input.  
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Efficiency   The production of goods and services using the smallest amount of resources for the greatest number of output.  
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Division of labor   Division of a complex procedure into small tasks.  
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Specialization   The focus of a worker on only one or a few aspects of production.  
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Trade off   The sacrifice of one good in order to purchase or produce another.  
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Opportunity costs   The value lost by rejecting one use of resources in favor of another.  
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Production possibilities curve   A graphic representation showing all of the possible combinations of two goods or services that can be produced in a stated period.  
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Exchange   The process by which producers and consumers agree to provide one type of item in return for another.  
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Barter   The direct exchange of goods and services without the use of money.  
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Money   Any item typically currency that is commonly accepted in exchange for goods.  
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Credit   A form of exchange that allows consumers to use items with a promise of repayment over a specified time.  
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Value   The worth of a good or service for the purpose of exchange expressed as the amount of money that a consumer is willing to pay for service.  
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Utility   The usefulness of a good or service that contributes to its value.  
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Self Suffiencecy   The ability to fulfill all of ones needs without assistance.  
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Interdependence   The relationship of a neutral reliance of influence among people.  
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