Shanahan Economics vocabulary
Terms in this set (21)
buys and uses goods and services.
how resources are used to meet peoples wants and needs.
The number of consumers who want and are able to buy a good or service.
Items for sale that can be touched.
work done for someone else in exchange for payment.
The value of the second-best choice that is given up when a decision is made
Someone who makes goods or provides services using the factors of production.
The amount of an item produced for sale.
Things that people would like to have but can live without.
Things that people must have in order to survive.
Factors of Production
What is needed to make goods and provide services.
Many individuals desiring something that has limited availablity.
A person who has skill and leadership to start and manage a new business.
Communism (Command) Economy
An economy where the government controls the factors of production and makes business decisions.
Capitalism (Free-Market) Economy
An economy based on private ownership of business and consumers freely choose goods and services.
Land (natural resources)
material from Earth needed to make goods/services
Labor (human resources)
talents and skills of human beings
human-made materials that help produce products and services.
GDP (Gross Domestic Product)
The value of all the goods and services that a country produces in a year.
when a country becomes skilled at producing one good or service
the amount of money a business makes after its expenses are paid