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Vocabulary economics

STUDY
PLAY
economics
study of how societies use limites resources to satisfy production wants and needs and decisions about production and distribution of goods and services
scarcity
the lack of resources to meet the needs and wants of a community
opportunity cost
what is given up in order to accept something else
resource
something that meets the needs of humans
renewable resource
a resource that can replenish or replace itself
nonrenewable resource
natural resources that cannot be replenished
fossil fuels
fuels that come from the earth and the breaking down of material. ex.coal, petroleum, natural gas
traditional economy
a system in which trradition and custom control all economic activity, exists in only a few parts of the world today
market economy
an economic system based on free enterprise, in which businesses are privately owned and production and prices are determined by supply and demand
free enterprise
a feature of capitalism that allows peopl to make a profit and benefit from their talents and resources
capitalism
economic system that relies on the forces of supply and demand to control economic decisions
mixed economy
an economy in which the government supports and regulates enterprise through decisions that affect the marketplace
command economy
economic system in which economic decisions about production and distribution are made by some central authority
communism
society based on equality in which workers would control industrial production
socialism
political philosopbhy in which the government owns the means of production
developed counrty
country that has a great deal of technology and manufacturing
developing country
country in the process of becoming induwstrialized
industrialization
transition from an agricultural society to one based on industry
infastructure
the basic urban necessities like streets and utilities
standard of living
the degree to which a person group or society has the basic necessities comforts and luxuries
quality of life
the degree of enjoyment and satisfaction experienced in everyday life opposed to financial or material well-being
GDP per capita
the value of goods and services created within a country in a year per person
comparative advantage
countries have a comparative advantage for a product if they can produce it at a lower opportunity cost than other countries
trade barriers
things that prevent free trasde such as tariffs quotas and embargos
tariff
a tax on imports and exports
free trade
the removal of trade barriers so that goods can flow freely between countries