american citizenship test 18&19
heres the terms for ch 18&19
Terms
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- Gross Domestic Product
- the total value in dollars of the final goods and services produced in a country in a single year
- marginal benefit
- the extra benefit associated with an action
- specialization
- takes place when people, businesses, and regions, and even countries concentrate on goods or services that they can produce better than anyone else
- free enterprise
- competition can flourish without government interference
- competition
- the struggle that goes on between buyers and sellers to get the best products at the lowedt prices
- entrepreneur
- individuals who start new businesses, introduce new products, and improve management techniques
- trade-off
- the alternative you face if you decide to do one thing rather than another
- economic models
- are simplified representations of the real world that are used to explain how the economy works
- economics
- the study of how we make decisions in a world where resources are limited
- factor market
- the markets where productive resources are bought and sold, workers earn wages, people who own land may rent it, and those who own capital exchange it for interest
- productivity
- the measure of the amount of output produced by a given amount of inputs in a specific period of time
- product market
- the markets where producers offer goods and services for sale, they get money for those and use it to pay for more natural resources, labor, and capital , which are then used to produce more products to be sold in the product market
- marginal cost
- is the additional cost of producing one extra unit of output
- services
- work that is preformed for someone else
- factors of production
- resources necessary to produce good or services; natural resources, labor, capital, and entrepreneurs
- variable cost
- expenses that change with the number of products produced
- private property rights
- freedom to own, use, or dispose of our own property as we choose as long as we do not interefere with the rights of others
- division of labor
- the breaking down of a job into seperate, smaller tasks, which are preformed by different workers
- human capital
- the sum of skills, abilities, and motivation of people
- scarcity
- occurs whenever we don't have enough resources to produce all the things we would like to have
- profit motive
- the driving force that encourages indiciduals and organizations to improve their well-being
- economic interdependence
- we rely on others and they rely on us
- standard of living
- the quality of life based on the possesion of necessities and luxuries that make life easier
- wants
- things we would like to have that make life more comfortable
- consumer sovereignty
- the consumer is the one that decides what goods are produced
- oppurtunity cost
- the cost of the next best use of your time or money when you choose to do one thing rather than another
- cost-benefit analysis
- an economic model that compares the marginal costs and marginal benefits of a situation
- natural resources
- all the "gifts of nature" that make production possible
- fixed cost
- expenses that are the same no matter how many units of goods are produced
- goods
- tangible products
- capitalism
- an economic system in which private citizens own and use the factors of production in order to seek profit
- labor
- the physical and mental efforts that people contribute to the production of goods or services
- voluntary exchange
- is the act of buyers and sellers freely and willingly exchanging in market transactions
- capital
- tools, machinery, and buildings used to make other products
- profit
- is the amount of money left over after all the costs of production have been paid
- needs
- necessities required for survival