Term
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Definition
things that you must have to live
Ex: water, food, shelter |
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Term
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Definition
things that make your life better but isn't exactly needed to survive
Ex: newest style of clothes, big house, new car |
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Term
| difference between needs and wants |
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Definition
| wants are things that make your life more enjoyable and easier but not necessary; needs are necessary to live |
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Term
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Definition
| things that can be seen and touched (tangible items) |
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Term
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Definition
actions that are bought by a consumer
(intangible items) |
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Term
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Definition
| the way goods and services are made |
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Term
| What are the 3 kinds of economic resources? |
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Definition
| natural resources, human resources, and capital resources |
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Term
| What are natural resources? |
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Definition
materials that come from nature
Ex: oil, minerals, nutrients |
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Term
| What are human resources? |
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Definition
these are the people that help with the production of the goods and services
Ex: entrepreneurs, farmers, sales people |
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Term
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Definition
| type of human resource; uses resources to develop an entirely new product or service |
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Term
| What are capital resources? |
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Definition
the money and tools that are used in the production of goods and services
Ex: buildings, equipment, money to buy a truck or pay employees |
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Term
| The Basic Economic Problem |
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Definition
| we have unlimited needs and wants but limited economic resources |
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Term
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Definition
| not having enough resources for every need; forces us to make choices among the alternatives |
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Term
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Definition
| the process of choosing which wants, among many options, will satisfy you the most |
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Term
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Definition
when you give up something for something else
Ex: don't buy new shoes, but instead go to movies with friends and get food |
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Term
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Definition
| the value of the choice you decided not to go with |
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Term
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Definition
| 1. define the problem 2. identify choices 3. evaluate pros and cons of each choice 4. choose one choice 5. act upon your choice 6. review your decision |
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Term
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Definition
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Term
| The Three Economic Questions |
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Definition
1 - What will be produced?
2 - How will it be produced?
3 - What will be satisfied with what is produced? |
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Term
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Definition
| Nations do not have all the same types of natural resources; therefore, they must use what they do have to produce goods |
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Term
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Definition
the Nations must decide what resources they will use in order to produce the goods
Ex: instead of manual farming, there is new farming equipment that makes it easier and more efficient |
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Term
| What Needs and Wants to Satisfy? |
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Definition
| a nation must decide which needs and wants are the most important when deciding what goods and services to produce |
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Term
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Definition
| the plan for answering the three economic questions |
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Term
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Definition
| resources are owned and controlled by the government; what you do with your money can be controlled by the government |
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Term
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Definition
| resources are owned by the people of the country; government has a limited role |
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Term
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Definition
| goods and services are produced the way it has always been; used in lesser-developed countries and not-yet participating in the global economy |
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Term
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Definition
| combines elements of command and market economies; government makes many of the decisions about how the resources will be used, but once people gain money, then they have the resources to purchase more goods and services |
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Term
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Definition
| private ownership of resources by individuals rather than the government, owners are free to decide what to produce and consumers are free to decide what to buy |
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Term
| U.S. Economic System Principles |
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Definition
| private property, freedom of choice, profit, and competition |
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Term
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Definition
| the right of private property means you can own, use, or dispose of things of value; own what you want and decide what you want to do with it |
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Term
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Definition
| you make the decisions by yourself and you must face the consequences of those decisions |
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Term
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Definition
| the money left after all the costs of operating a business have been paid; businesses/individuals that invest and take risks have a right to make a profit |
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Term
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Definition
| rivalry among businesses to sell their goods and services, forces businesses to improve products-keep costs low-provide effective customer service-search for new ideas |
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Term
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Definition
| person who buys and uses goods and services |
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Term
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Definition
| individuals and organizations that decide what products and services will be available for consumers to buy; the people making the goods and services |
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Term
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Definition
| how much of the goods and services the consumers are willing and able to buy |
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Term
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Definition
| the goods and services that businesses are willing and able to provide |
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Term
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Definition
| point where supply and demand are equal |
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