Core Concept 5 Flashcards
What is the study of how people meet their wants and needs?
economics
What is a limited supply of resources to meet needs?
scarcity
What is the cost of what you have to give up?
opportunity cost
What is the desire for a certain good or service?
demand
What is the amount of goods or services available for use?
supply
Who are people or businesses that make and sell products?
producers
Who are people or businesses that buy, or consume, products?
consumers
What is a factor that encourages people to act a certain way?
incentive
What is an organized way for producers and consumers to trade goods and services?
market
What is the money a company has left after subtracting the cost of doing business?
profit
What is the money earned by selling goods and services?
revenue
What is the act of concentrating on a limited number of goods or activities?
specialization
What is the struggle among producers for consumers’ money?
competition
What is the general increase in prices over time?
inflation
What is a decline in economic growth for 6 months or more?
recession
Which type of economy combines the other types (traditional, market, and command) and is most common?
mixed economy
A _____?_____ economy is an economy in which the central government makes all the economic decisions.
command economy
A _____?_____ economy is an economy in which individual consumers and producers make economic decisions.
market economy
A _____?_____ economy is an economy in which people make economic decisions based on their customs and habits.
traditional economy
What is economic growth or increase in living standards?
development
What is a country with a strong economy and high standard of living?
developed country
What is a country with less-productive economies and lower standards of living?
developing country
What is the total value of all goods and services produced in a country in a year?
gross domestic product (GDP)
What is the amount of goods and services and services produced given the amount of resources used?
productivity
What is the practical application of knowledge to accomplish a task?
technology
What is the exchange of goods and services in a market?
trade
What are goods and services produced within a country and sold outside the country’s borders?
exports
What are goods and services sold in a country that are produced in other countries?
imports
What is a tax on imports of exports?
tariff
What is a government policy or restriction that limits international trade?
trade barrier
What is the removal of trade barriers?
free trade
What is a plan that shows income and expenses over a period of time?
budget
What is the act of setting aside money for future use?
saving
What is the price paid for borrowing money?
interest
What is an arrangement in which a buyer can borrow to purchase something and pay for it over time?
credit
What is the act of using money in hopes of making a future profit?
investing
What is a share of ownership in company?
stock
What is a certificate issued by a company or government promising to pay back borrowed money with interest?
bond
