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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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