| Term | Definition |
|---|
| Three types of economies | free market economy, central or command economy, traditional economy |
| free market economy | economy in which the market determines what goods and services are produced. Examples: United States, Canada, Japan |
| central or command economy | economy in which the government decides how many of which goods are produced and sets prices. Example: North Korea, Cuba |
| traditional economy | economy in which social roles and culture determine the goods and services that are produced and which consumers are allowed to buy goods and services. |
| economics | the production, distribution, and consumption of goods and services |
| goods | a tangible product which may be sold to a consumer or another industry. |
| resource | something that may be used to create goods and services. |
| renewable resource | unlimited |
| Resource distribution | Resources are not evenly distributed around the world. |
| Resource owners | Some resources are privately owned while others are publicly owned. |
| renewable resource | resources that can be replaced |
| natural resource | a resource not created by people. |
| capital | tools, buildings and other physical things that are used to make goods |
| production | the way that societies turn resources into goods and services |
| profit | total revenue minus costs |
| opportunity costs | if you can use something for one thing, then you cannot use it for another |
| labor | workers with appropriate skills and knowledge to make goods or services. Labor may be mental, physical or both. |
| durable item | long lasting, more expensive items mostly used by businesses |
| account | money deposited and held at a bank for use in checking or savings. |
| debit card | card issued by a bank that permits immediate electronic transfer of funds from the holder's account for payment of purchases. |
| interest | money owed to a lending institution for money borrowed |
| I.O.U. | a document that acknowledges a debt. |
| nonrenewable resource | limited |
Combine with other sets
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