Ch 1 & 2 Key Terms

Question 1

Goods

Answer 1

are things that you can see and touch

Question 2

services

Answer 2

are activities or experiences that are consumed at the same time they are produced

Question 3

economic resources

Answer 3

are things used to produce goods and services

Question 4

scarcity

Answer 4

means not having enough resources to satisfy every need

Question 5

trafe-off

Answer 5

when you give up something to have something else

Question 6

market economy

Answer 6

resources are owned and controlled by the people of the country

Question 7

traditional economy

Answer 7

goods and services are produced the ay they always have been produced

Question 8

mixed economy

Answer 8

combines elements of the command and market economies

Question 9

demand

Answer 9

is the quantity of a good or service that consumers are willing and able to buy

Question 10

supply

Answer 10

is the quantity of a good or service that businesses are willing and able to provide

Question 11

GDP

Answer 11

is the total value of all final goods and services produced in a country during one year

Question 12

GDP per capita

Answer 12

is calculated by dividing GDP by total population

Question 13

productivity

Answer 13

is production output in relation to a unit of input

Question 14

unemployment rate

Answer 14

is the portion of people in the labor force not working

Question 15

market price

Answer 15

is the point where supply and demand are equal

Question 16

consumer

Answer 16

is a person who buys and uses goods and services

Question 17

producer

Answer 17

is an individual or organization that determines what products/services will be available for sale

Question 18

captialism

Answer 18

refers to the private ownership or economic resources by individuals rather than the government

Question 19

profit

Answer 19

is money left after all business costs have been paid

Question 20

competition

Answer 20

rivalry among businesses to sell their goods/services