Ch 1 terms Economic Decisions System(SB)
Terms
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- traditional economy
- an economy in which goods and services are produced the way they have always been produced. It is used in countries that are less developed and are not yet participating in the global economy
- capitalism
- the private ownership of resources by individuals, rather than by the government
- economic resources
- the means through which goods and services are produced
- mixed economy
- an economy that combines elements of the command and market economies
- producers
- individuals and organizations that determine what products and services will be available for sale
- command economy
- an economy in which resources are owned and controlled by the government
- economic decision-making
- the process of choosing which wants, among several options, will be satisfied
- opportunity cost
- the value of the next-best alternative that you did not choose
- consumer
- a person who buys and uses goods and services
- economic system
- a nation's plan for answering the three economic questions
- supply
- the quanity of a good or service that businesses are willing and able to provide
- wants
- things that you add comfort and pleasure to your life
- services
- activities that are consumed at the same time they are produced
- market economy
- an economy in which the resources are owned and controlled by the people of the country
- market price
- the point where supply and demand are equal.
- needs
- things that are required in order to live
- tradeoff
- what you make when you give something up to have something else
- scarcity
- not having enough resources to satisfy every need
- goods
- things that you can see and touch; they are produce or manufacture products used by other business or purchased by final consumers