Economic Decisions System (MA)
Terms
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- opportunity cost
- The value of the next-best alternative that you did not choose
- traditional economy
- Goods and services are produced the way it has always been done
- goods
- Things that you can see and touch or purchase to meet your wants and needs
- market price
- The point where supply and demand are equal
- services
- Activities that are consumed at the same time they are produced
- command economy
- The resources are owned and controlled by the government
- economic resources
- The means through which goods and services are produced. (Factors of Production)
- producers
- Individuals and organizations hat determine what products and services wil be available for sale
- market economy
- The resources are owned and controlled by the people of the country
- economic system
- A nation's plan for answering the three economic questions
- wants
- Things that add comfort and pleasure to your life
- needs
- Things that are required in order to live
- competition
- The rivalry among businesses to sell their goods and services
- mixed economy
- Combines elements of the command and market economies
- supply
- Refers to the quantity of a good or service that businesses are willing and able to provide
- economic decision-making
- The process of choosing which wants, among several options, will be satisfied.
- tradeoff
- When you give up something to have something else.
- consumer
- A person who buys and uses goods and services
- scarcity
- means not having enough resources to satisfy every need
- capitalism
- Refers to the private ownership of resources by individuals, rather than by the gorvernment