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Chapter 3 LA History Vocabulary 8th GR Part I

Terms in this set (18)

goods
Physical objects such as clothes or shoes
Services
activities that people do for a fee
Consumer
a person who satisfies a want or a need by buying a good or service.
Producer
a person or business who uses resources to make goods or provide services.
natural resources
a gift of nature, part of the natural environment such as water, trees, and minerals
human resources
the people who produce goods and provide services
capital resources
the money and property - factories, tools, bridges, machines, and other items - used to produce goods and services.
Scarcity
people need and want more than the available resources can provide
opportunity cost
the value of your second choice, the next best alternative
supply
the quantity of a good or service offered for sale.
demand
the quantity of a good or service that consumers are willing and able to buy
profit
the amount left after costs are subtracted from the price
Traditional Economy
economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services
command economy
An economic system in which the government controls a country's economy.
market economy
Economic decisions are made by individuals or the open market.
barter
Exchange goods without involving money.
Mercantilism
An economic policy under which nations sought to increase their wealth and power by obtaining large amounts of gold and silver and by selling more goods than they bought
smuggling
trading illegally with other nations
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