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LAP-EC-017 Andrew Parker

Terms in this set (31)

Capital goods
Manufactured or constructed items that are used to produce goods and services
Central planning
Detailed economic processes and goals developed by government; usually associated with communist economies
Command economy
An economic system in which all or many of the means of production and distribution are owned and controlled by the government
Communism
A command economic system in which the government controls the economic system and does not allow private ownership of the means of production and distribution
Competition
The rivalry between two or more businesses to attract scarce customer dollars
Consumer goods
Tangible items produced for personal use
Consumers
People who use goods and services to satisfy their wants
Demand
The quantity of a good or service that buyers are ready to buy at a given price at a particular time
Distribution
The process or activity by which income is divided among resource owners and producers
Economic system
The organized way in which a country handles its economic decisions and solves its economic problems
Economic vote
Term used to describe consumer approval of products expressed by the purchase of products
Government
A country's arrangement for making and enforcing laws
Human resources
People who work to produce goods and services
Human-services programs
Benefits such as free health care, education, and welfare that are provided by a government to its citizens
Industrial goods
Tangible items that will be consumed by industrial users
Interdependent
Influencing or relying upon one another
Market economy
An economic system in which the questions of what, how, and for whom goods will be produced are answered by individuals and businesses in the marketplace
Markets
Arrangements for the buying and selling of goods and services
Means of production
All the resources required in the production of goods and services
Medium of exchange
Something of value that can be used to obtain goods and services; most common form is money
Natural resources
Items that are found in nature and used to produce goods and services
Producers
The people who make or provide goods and services
Profit
Monetary reward a business owner receives for taking the risk involved in investing in a business; income left once all expenses are paid
Quotas
Specific goals to be met
Resource
Any item that is used to accomplish another activity, such as producing/providing goods and services
Scarcity
A condition resulting from the gap between unlimited wants for goods and services and limited resources
Socialism
A modified command economic system in which government owns the basic means of production and allows private ownership of businesses as well
Subsistence
Existence at a level that barely supports life
Supply
The quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period
Traditional economy
An economic system in which people produce only what they must have in order to exist; all economic decisions are based on habit and tradition
Welfare state
A government that provides multiple social programs such as free health care and education to its citizens
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