Chapter 19 Flashcards
(25 cards)
Goods
Tangible products that satisfy needs && wants
Services
Work that is preformed for someone else
Factors of Production
Type of resources - natural , labor , capital , && enterprise that are necessary to produce goods && services
Natural Resources
All the things in nature that make production possible
Labor
The nations labor force && Human Resources; physical && mental talents that people contribute to production of goods && services
Capital
Tools , machinery , && buildings used to make goods
Entrepreneur
One who starts a new business , introduced a new product , && improved management techniques
Gross Domestic Product (( GPD))
Total value , in dollars , of all final goods && service produced in a country during a single year
Standard of living
Quality of life based on possible of necessities && luxuries that make life easier
Factor market
Market where productive resources are bought && sold
Product market
Market where producers offer goods && services for sale
Productivity
Measure of the amount of output produced by a given amout by inputs in a specific period of time
Specialization
Concentration on goods or services that one , business , or nation can produce better than anyone
Division of labors
The breaking down of a job in separate , smaller tasks , which are preformed by different workers
Economic independence
The reliance of others to provide the goods && services consumed
Capitalism
An economic system in which private citizens own && use the factors of production in order to seek profit
Free enterprise
A kind of economy in which competition is allowed to flourish with a minimum of gov interference
Consumer sovereignty
Situation in which consumer determined what produces will be produced
Private property rights
Feature of capitalism in which people have the freedoms to own && use their property as they choose as long as it does not interfere with the rights of others
Competition
Struggles that goes on between buyers && Sellers to get the best products at the lowest price
Profit motive
Divorcing force the encourages one && organizations to improve their material well - being
Voluntary exchange
Act of buyers && sellers freely && willingly engaging in market transactions
Ethical behavior
The consumer’s responsibility to respect the rights of the people produced sellers
Disposable income
Income a person has left after taxes
