Economics key terminology Flashcards
1
Q
Economy
A
A system that involves production and distribution as well as consumption. Has producers and consumers
2
Q
Opportunity cost
A
The value of the next best alternative use of resources.
3
Q
Profit
A
The amount of money a business or person makes after taking away its expenses
4
Q
Injection
A
Money that enters an economy
5
Q
Leakage
A
Money that leaves an economy
6
Q
Globalization
A
The increasing connections of countries around the world
7
Q
Commodities
A
Raw materials or agricultural products that can be bought or sold
8
Q
Economies of sale
A
Savings in costs resulting from higher levels of production
