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a person, company, or business that uses goods or services. Example: When you buy things a a store you are acting as a consumer. |
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a person, company, or business that makes goods or provides services for consumers.
Example: when you make things to sell to other people you are acting as a producer. |
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objects of value acquired and used by consumers
Example: Cars, cakes, and computers are examples of goods. |
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actions or activities an individual, company, or business provides for someone else.
Example: Repairing cars is an example of a service. |
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moving goods and services directly to or near consumers
Example: Trucks, ships, and railroads are used for distribution |
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The process of making goods and services
Example: An assembly line is used in the production of automobiles. |
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different ways that people use resources to make and exchange goods and services
Example: Bartering is the oldest economic system in the world |
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goods and services are traded, but money is rarely exchanged.
Example: A traditional economy is more likely to be in a remote community in which people grown their own food and make their own goods. |
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to trade
Example: He bartered and traded a pencil for a ruler in the class barter game. |
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What is produced and distributed is based on what consumers are willing to buy and the price they will pay.
Example: In a market economy, the price people are willing to sell goods for depends on the price people are willing to pay. |
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a central authority plans and controls what is produced and distributed
Example: In a command economy prices are set by the central authority |
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a combination of command and market economies
Example: In coutries with mixed economies, the government may own some industries, while others belong to private owners. |
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a system for producing, distributing, and consuming goods and services.
Example: Banks, factories, and consumers all have a role in the economy. |
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the resources used to produce goods and services
Example: The factors of production are also called "productive resources." |
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One who takes risks, makes decisions, and organizes other productive resources to earn a profit
Example: An entrepreneur is often someone who starts a business |
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the abilities, talents, training, skills, and knowledge of people used in the production of goods or services.
Example: Human resources may use physical or mental efforts |
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productive resources that occur in nature.
Example: Natural resources include water, soil, trees, and minerals. |
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machinery, tools, factories, stores, vehicles, etc. made by humans that are used to produce goods or services.
Example: Tractors used to harvest crops are capital resources. |
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data that helps to show the economic condition of a country.
Example: The Gross Domestic Product is an example of an economic indicator |
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Gross Domestic Product (GDP) |
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the total value of all the goods and services produced in an economy in a given year.
Example: The Gross Domestic Product is an example of an economic indicator |
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the amount of money people make in a country, divided by the number of people in the country.
Example: In wealthy countries the Per Capita Income is high. |
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the average life span of a newborn; life expectancy is an indicator of the overall health of a country.
Example: The higher the life expectancy, the better economic shape a country is in. |
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the number of deaths of infants, one year or younger
Example: The infant mortality rate has continued to decline over the past several years. |
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the ability to read and write
Example: Literacy is important because it affects people's ability to prepare for and hold jobs. |
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countries with less productive economies and a lower quality of life.
Example: Almost two-thirds of the people in the world live in developing countries |
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Countries with strong economies and a high quality of life.
Example: Developed countries like the United States and Germany have a higher per capita GDP and high levels of industrialization. |
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