Economics

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Terms in this set (...)

Sanitation
Systems and conditions used to keep clean
Economics
the study of scarcity and choices
Scarcity
Limited, but desirable
interdependence
relying on each other
Opportunity
having a chance to do something
Global
Worldwide
Child mortality rate
amount of children per 1000, under the age of 5 that die in a country (indicator of development)
resources
capital, land and labour - things that are available for use
employment
jobs that people can have to earn money
benefit
gain
circular flow model
explains the cycle of the trade of goods, services, resources and money between firms and households
necessity
something that you need to survive
opportunity cost
the loss of the alternative because of a choice made
mutually beneficial
everyone benefits
life expectancy
average years people live (indicator of development)
specialization
to focus on doing one thing because it is what you are best at
compromise
giving up things to make a deal
efficiency
getting things done as quickly and effectively as possible
Industrial revolution
a point in at 1700s when inventions and technology advanced
commodity
product
consequences
the result of an action
law of diminishing returns
after you reach the maximum efficiency
profit
amount of money gained after trading
assembly line
sharing jobs to accomplish it quickly - using specialization
firms
companies, the groups that create things to sell
relationships
connections
production
to make things
households
those that supply the resources for the firms
trade
exchange of goods, services and money
limited
when something is scarce, not enough
market
the opportunity to trade goods and services, sometimes it is a place
choices
making a decision
fairness
when something is equal
altruistic
to give totally, without wanting anything in return
alternative
possible different choice.
development
improving the standards of a place, country, people
pros and cons
the good and bad of something