Ch 1 terms
Terms
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- Supply
- refers to the quantity of a good or service that businesses are willing and able to provide.
- economic system
- a nation's plan for answering the three economic question.
- Economic resources
- the means through which goods and services are produced.
- Economic decision-making
- the process of choosing which wants, among several options, will be satisfied.
- wants
- things that add comfort and pleasure to your life.
- consumer
- a person who buys and uses goods and services.
- market economy
- the resources are owned and controlled by the people of the country.
- services
- are activities that are consumed at the same time they are produced.
- competition
- the rivalry among business to sell their goods and services.
- tradeoff
- when you give up something to have something else.
- command economy
- the resources are owned and controlled by the government.
- Capitalism
- refers to the private ownership of resources by individuals, rather than by the government.
- opportunity cost
- the value of the next-best alternative that you did not choose.
- mixed economy
- combines elements of the command and market economies.
- traditional economy
- goods and services are produced the way it has always been done.
- goods
- things that you can see and touch.
- market price
- the point where supply and demand are equal.
- scarcity
- means not having enough resources to satisfy every need.
- Producers
- are individuals and organizations that determine what products and services willl be available for sale.
- needs
- things that are required in order to live.