Economics Basics Flashcards
What is the economy?
The system of trade or the exchange of things of value
Define commodity.
Something of value that can be bought
What is a financial exchange?
The process of using money to buy and sell commodities
What do people do when making choices about commodities?
They decide what they want and what they are willing to trade for it
What is a service-based business?
A company that is focused on selling services
What is a product-based business?
A company that is focused on selling goods
How can markets be categorized?
By the type of commodity being exchanged and the type of consumer buying the commodity
What does the phrase ‘on the market’ mean?
Describes something that is currently available for sale or trade
What does ‘bringing a product to market’ refer to?
Making a commodity available for sale or trade in a market
What does ‘in the market’ refer to?
A consumer who is seeking a particular type of commodity
Define marketing.
The combination of ways that producers research, plan for, and communicate with consumers in a market
What geographical factors affect markets?
Location, distance from shipping routes, major cities, borders, and accessibility
What type of land is good for agriculture?
Flat, rich land
List some natural resources that can provide valuable trade.
- Coal
- Oil
- Iron
- Natural gas
- Timber
- Fishing
What attracts tourists according to geographical market factors?
Natural beauty and nice weather
Why is the population of a region important for the economy?
The ages, education, skills, and lifestyles of the people affect economic activity
