Civics Chapter 11 Flashcards
Capital
Anything produced in an economy that is used to produce other goods or services.
Factors of Production
The resources people have for producing goods and services to satisfy their wants
Consumption
Act of buying or using goods and services
Opportunity Cost
The highest valued benefit given up when a choice is made.
Scarcity
Resources are always limited compared to the number and variety of wants people have
Quantity
Amount
Technology
Practical application of science to commerce or industry
Traditional economy
The basic economic decisions are according to long-established patterns of behavior that are unlikely to change
Command Economy
The government or a central authority owns or controls the factors of production and makes the basic economic decisions
Market economy
A system in which private individuals own the factors of production and are free to make their own choices about consumption, production, and distribution.
Profit
Difference between the total cost of production and the total revenues received from the buyers
Invest
To use your money to help a business get started or grow, with the hope that the business will earn a profit which you can share.
Free enterprise
System in which individuals in a market economy are free to undertake economic activities with little or no involvement of the government
Capitalism
System in which people make their own decisions about how to save resources as capital and how to use their capital to produce goods and provide service
Mixed economy
Economy that is a mixture of the three basic systems
