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Money Matters Unit 1 Test Review

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Term
Definition
Resources   Supplies of value for production  
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Consumer   Those who buy or use goods and services are a ...  
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Goods   Items that are produced, sold, and bought by consumers  
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Producer   a company or individual who provides goods and services is a ...  
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Scarce   In limited quantity compared to demand  
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Service   An action completed for consumers  
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Demand   The amount of need or interest in a product or service  
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Allocate   To distribute something among those who need or want it  
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Value   The worth of an item in consideration with goods services, or money  
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Nonrenewable Resource   A resource that, once used, is no longer available  
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Renewable Resource   A resource that can be replenished after use  
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Scarcity   The idea that all resources are limited and insufficient to meet unlimited wants and needs  
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Limited   Restricted within boundaries  
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Factors of production   Resources needed to produce a good service  
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Needs   Goods that are necessities for survival and health  
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Wants   goods that are desired despite not being needed for survival  
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Opportunity cost   The principle that one opportunity must be given up in order to consume or produce another  
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Revenue   the total income received from an economic action  
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Profit   Income received from an economic action, minus the costs of taking the action  
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Production Cost   the total amount needed to produce a good or service  
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Production Possibility Curve   A representation of the combination of goods and services that can be produced in a situation  
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Closed economy   An economy that operates without imports or exports as part of a self-sufficient community  
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Mixed Market Economy   An economy that has some government intervention  
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Regulate   To govern by providing guides and limitations  
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Command economy   An economy in which the government determines production, prices and income  
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Traditional economy   An economy based on custom or tradition of a family or community  
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Pure market economy   An economy in which goods are produced and sold privately, with no government interaction  
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Income   the money a person earns for providing a service or selling goods  
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Ownership   The right to possess something  
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Private Property   Land or goods owned and used by a person  
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Public Property   Land or goods owned by the government  
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Competition   What happens when two or more parties seek the same prize or benefit  
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Restrict   To create limits  
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Free enterprise   An economic system in which there are minimal restrictions on business ownereship and activity  
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