Economics Vocabulary Chapter 1

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tools, equipment, and factories used in the production of goods and services
person who uses goods and services to satisfy needs adn wants
Consumer good
product intended for the final use by consumers rather then businesses
process of using up goods and services to satisfy needs and wants
Durable goos
goods that lasts more than three yeears when used regularly
Economic independence
economic activities in one part of the country or world affect what happens elsewhere
the study of human efforts to satisfy their unlimited needs and wants by making choices on how to use scarce resourses
risk-taking individuals in search of profits
Factor market
market where productive resources are bought adn sold
Factors of Production
productive resources that make up the 4 categories of land, capital, labor, and entrepreneurship
Financial capital
money used to buy the tools and equipment used in production
free enterprise economy
market economy in which privately owned businesses have the freedom to operate for a profit with limited government involement
free products
things such as sunshine or air because they are so plentiful; because no one can own them, no price attached to them
tangible economic product that is useful, relatively scarce, and transferable to others
people with all their abilities and efforts involved with production
a productive resource not created by human efforts involved with production
meeting place or mechanism allowing buyers and sellers of an economic product to come together
basic requirement for survival
Nondurable good
item that lasts for less than three years when used regualrly
Opportunity cost
cost of the next best alternative use of money, time, or resources when one choice is made rather than another
Product market
market where goods and services are offered for sale
process of creating goods adn services using productive resources
Production possiblities frontier
diagram representing maximum combinations of goods and/or services an economy can produce when all productive resources are fully employed
degree to which productive resources are used efficiently
economic problem resulting from a combination of scarce resources and people’s unlimited wants and needs
work that is performed for someone
assignment of tasks so that each worker performs fewer functions more frequently
Ability or capacity of a good or service to be useful and give satisfaction to someone
worth of a good or service as determined by the market
sum of tangible economic goods that are scarce, useful, and transferable from one person to another
Categories: Vocabulary