38 terms

Economics

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Any item that can be traded for goods or services
Money
Anything that has value that can be touched
Goods
Job done for money
Services
When there is too much money and it becomes worthless
Inflation
The way goods and services are produced, bought, and sold
Economy
How much is available
Supply
How much people want
Demand
An economic system in which people choose freely what to buy and sell
Market Economy
An economic system in which the government makes all economic decisions
Command Economy
An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next
Traditional Economy
Market-based economic system with limited government involvement
Mixed Economy
How much an item costs
Price
Economies that are rich and have many industries and factories
Developed Economies
Economies that are poorer and trying to become developed
Developing Economies
Resources that can be used again or brought back
Renewable Resources
Resources that cannot be brought back or used again
Non-renewable Resources
when there is not enough of something to satisfy how much everyone wants of it.
Scarcity
a measure of how well people live
Standard of living
the principle that suppliers will normally offer more for sale at high prices and less at lower prices
Law of Supply
the quantity demanded of a good or service varies inversely with its price
Law of Demand
"gifts of nature" or natural resources not created by humans
Land
the tools, equipment, machinery, and factories used in the production of goods and services
Capital
people with all of their abilities, efforts, and skills
Labor
The process of creating goods and services
Production
the resources required to produce the things we would like to have--these are land, capital, labor, and entrepreneurs.
Factors of Production
a risk- taking individual in search of profits who does something new with existing resources
Entrepreneurs
the dollar value of all final goods and services and structures produced within a country's borders in a 12 month period.
Gross Domestic Product
when a nation's total output of good and services increase over time
Economic Growth
the alternative choices people face in making an economic decision
Trade-offs
the cost of the next best alternative among a person's choices-the time, money, or resources that are given up or sacrificed to make the final choice
Opportunity Cost
things you would like to have but are not necessary for survival
Wants
something like air, food, or shelter that is necessary for survival
Need
a situation in which a good or service is unavailable; a temporary situation
Shortage
What goods and services should be produced?
How these goods and services should be produced?
For whom should these goods and services be produced?
Three Economic Questions
economics
the science that deals with the production, allocation, and use of goods and services.
economics began with
Greeks (Plato and Aristotle) and later Romans (Cicero and Virgil)
Medieval times economics
Feudalism (Kings, Lords, nobles, peasants, serfs)
Mercantilism economics
16th, 17th, 18th century economics