Chapter 1: Consumers Flashcards
(24 cards)
an economic system in which the government owns most resources and makes most economic decisions
command economy
anyone who buys or uses products or services
consumer
the study of the role consumer play in an economic system
consumer economics
the study of how economic systems work
economics
the things you want to accomplish in your life
goals
a cycle made up of important events that take place during different phases of your life
life cycle
the time between a person’s birth and death
life span
long-term goals that you try to reach during your life
life-span goals
something you hope to achieve over a period of years
long-term goals
economic system in which the people rather than the government own the resources and run the businesses
market economy
an economic system that has characteristics of a market and command economy
mixed economy
things you cannot live without
needs
the value of your next best alternative whenever you make a choice
opportunity cost
the difference between the money received from selling a product and the cost of producing that product
profit
all the things used to create other goods or services (human and nonhuman)
resources
the basic economic problem that consumers’ wants are always greater than the resources available to satisfy those wants
scarcity
something you hope to achieve within a year
short-term goals
the quantity of a product that producers are willing and able to make available for sale at various prices over a given time period
supply
your principles, what you use to judge good and bad, important and unimportant, etc. for you
values
things you would like to have but can live without
wants
an economic system in which production methods are passed from one generation to the next
traditional economy
a choice made in an organized logical manner so that it will most likely fulfill your need or want (prevent buyers remorse & impulse buying)
rational buying decision
the price at which the quantity supplied exactly equals the quantity demanded of that product
equilibrium price
the creation of goods and services
production
