5171621
Description
Flashcards by Mahogany Alajiah, updated more than 1 year ago
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Created by Mahogany Alajiah
over 8 years ago
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| Question | Answer |
| Economics | Study of how we use the limited resources that we have |
| Wants vs. Needs | Needs are essential. Wantes are our desires |
| Scarcity | Not enough to produce what we want |
| Factors of Production | Resources essential to produce goods and services |
| Land | Natural Reources |
| Labor | Human Resources |
| Capital | Goods used to make other goods and services |
| Entrepreneurship | Owner |
| Adam Smith | Father of Free Enterprise |
| Capitalism | Private citizens own their stuff |
| Free Enterprise System | Business owners allowed to compete with each other for profit |
| Consumer Sovereignty | Consumer is ruler of the market, determining what products are going to be sold |
| Private Ownership | You own your own stuff, not the government |
| Competition | Struggle between buyers and sellers to get best products at lowest prices |
| Profit Motive | Driving force that encourages individuals and organizations to improve their material well-being |
| Laissez-Faire Economy | Government doesn't interfere with marketplace |
| Trade-Off | Losing one thing to another |
| Opportunity Cost | cost of any activity measured in terms of the value of the next best alternative |
| GDP | Total value of goods produced |
| Circular Flow Model | Flow of resources, goods and services and money |
| Factor Market | Markets where productive resources are brought and sold |
| Product Market | Markets where producers offer goods and services for sale |
| Specialization | Businesses or countries concentrate on goods and services they can produce better than everyone else |
| Division of Labor | Breaking down a job into multiple smaller tasks |
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