Chapter 19: Vocab Flashcards
SERVICES
work performed by a person for someone else
GOODS
tangible products that we use to satisfy our wants and needs
FACTORS OF PRODUCTION
resources necessary to produce goods and services
NATURAL RESOURCES
gifts of nature that make production possible
LABOR
human effort directed toward producing goods an services
CAPITAL
previously manufactured goods used to make other goods and services
ENTREPRENEUR
individual who starts a new business, introduces a new product, and improves a management technique
GROSS DOMESTIC PRODUCT (GDP)
total dollar value of all final goods and services produced in a country during a single year
STANDARD OF LIVING
the material well-being of an individual, group, or nation measured by how well their necessities and luxuries are satisfied
MARKET
free and willing exchange of goods and services between buyers and sellers
FACTOR MARKET
a market where productive resources are bought and sold
PRODUCT MARKET
a market where producers offer goods and services
PRODUCTIVITY
the degree to which resources are being used efficiently to produce goods and services
SPECIALIZATION
when people, businesses, regions, and/or nations concentrate on goods and services that they can produce better than anyone else
DIVISION OF LABOR
the breaking down of a job into separate, smaller tasks to be performed individually
ECONOMIC INTERDEPENDENCE
a reliance on others, as they rely on you, to provide goods and services to be consumed
CAPITALISM
a system in which private citizens own most, if not all, of the means of production and decide how to use them within legislated limits
FREE ENTERPRISE
economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference
CONSUMER SOVEREIGNTY
the role of consumer as the ruler of the market, determining what products will be produced
PRIVATE PROPERTY RIGHTS
the freedom to own and use our own property as we choose as long as we do not interfere with the rights of others
COMPETITION
the struggle that goes on between buyers and sellers to get the best products at the lowest prices
PROFIT
the money a business receives for it’s products or services over and above it’s costs
PROFIT MOTIVE
the driving force that encourages individuals and organizations to improve their material well-being
VOLUNTARY EXCHANGE
the act of buyers and sellers freely and willingly engaging in market transactions
LAISSEZ-FAIRE ECONOMICS
economic system where government should not interfere in the marketplace
