| Term | Definition |
|---|
| economy | organized way a nation provides for the needs and wants of its people |
| resources | all things used in producing goods and services |
| factors of production | land, labor, capital, entrepreneurship |
| infrastructure | physical development of a country |
| entrepreneurship | skills of people willing to invest time & money to run a business |
| scarcity | not enough; difference between needs & wants and available resources |
| traditional economy | traditions & rituals decide what, how, & for whom things will be produced |
| market economy | no government is involved in economic decisions |
| command economy | governement decides what, when, how much will be produced & distributed |
| land | everything contained in earth or found in seas |
| labor | all people who work |
| capital | money, factories, buildings, tools, raw materials, goods used in production process |
| approaches | ways of handling a situation |
| theory | idea that explains something and is supported by data |
| transition | a change from one state or condition to another |
| productivity | output per worker hour measured over a period of time |
| GDP (Gross Domestic Product) | output of goods & services produced in a country in a year |
| invest | put money into hoping it will earn more money |
| GNP (Gross National Product) | total dollar value of goods & services produced by a nation at home or away |
| inflation | rising prices |
| CPI (Consumer Price Index) | measures the change in consumer price over a period of time |
| PPI (Producer Price Index) | measures wholesale levels in the economy |
| business cycle | recurring changes in economic activity (expansion, recession, depression, recovery) |
| expansion | period of prosperity and growth |
| recession | period of economic slow-down that lasts at least 6 months |
| depression | long period of recession (high unemployment, businesses close, customers don't buy, production drops) |
| recovery | period of renewed economic growth following a recession or depression |
| economic questions | What, How, Who receives? |
Combine with other sets
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