Chapter 19 Vocabulary: The American Economy

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

factors of production

(natural resources) Land, Labor, Entrepreneurship, Capital

division of labor

Division of work into a number of separate tasks to be performed by different workers

labor

Human effort directed toward producing goods and services

factor market

Market where productive resources are bought and sold

goods

Physical objects such as clothes or shoes

natural resources

Raw materials supplied by nature that come from the earth, the water, or the air and are used to produce goods.

Gross Domestic Product (GDP)

The sum total of the value of all the goods and services produced in a nation

sector

a group within our economy who share the same economic aim and fulfil the same economic function

product market

a market where producers offer goods and services for sale

economic interdependence

a reliance on others, as they rely on you, to provide goods and services to be consumed

free enterprise

an economy that relies chiefly on market forces to allocate goods and resources and to determine prices

specialization

people, businesses, regions and countries concentrate on goods or services that they can produce better than anyone else

capital

previously manufactured goods used to produce other goods and services

standard of living

quantity and quality of goods and services available to an individual or society

voluntary exchange

the act of buyers and sellers freely and willingly engaging in market transactions

private property rights

the concept that people have the right and privilege to control their possessions as they wish

profit motive

the driving force that encourages individuals and organizations to improve their material well-being

market

the free and willing exchange of goods and services between buyers and sellers

consumer sovreignty

the power of consumers to decide what gets produced

competition

the struggle between buyers and sellers to get the bst products at the lowest prices

input

A good or service that is used to produce another good or service.

productivity

A performance measure that includes effectiveness and efficiency

consumer

A person who purchases goods and services for personal use

entrepreneur

A person who starts up and takes on the risk of a business

services

Actions or activities that one person performs for another.

profit

Amount of money a business earns above and beyond what it spends for salaries and other expenses

capitalism

An economic system based on private property and free enterprise.

laissez-faire economics

Hands off approach to government; the government should not interfere in the economy-created by Adam Smith in The Wealth of Nations


Kaugnay na mga set ng pag-aaral

Intro Sociology Chapter 3 Culture

View Set

Lesson 6 Logical Database Design

View Set